Croatian banks are tightening their belts and making it harder for companies and people to get loans.
The number of outstanding debts from loans at the end of 2017 was 245.9 billion Kuna, whilst in 2016 this figure was over 15 billion Kunas more at 261 billion Kunas. Banks in Croatia, of which 90 percent are owned by other European Union countries, mostly Italy, Austria and Hungary, have recently made it more difficult for citizens to raise finance for buying properties.
On the positive side for Croatian banks the level of non-performing loans, or loans on which the borrower is not making interest payments or repaying any principal, has fallen. The number of non-performing loans in Croatia fell to 11.37 percent in 2017, whilst in 2016 it was 13.8 percent.