ZAGREB: Demand among Croatian banks at a weekly reverse repo auction fell slightly on Monday with the interest rate steady at 0.5 percent, the central bank said.
It accepted all bids, worth 90 million kuna ($13.58 million), down from 100 million kuna a week ago.
The weekly auctions are held as a standing facility for providing short-term liquidity. This year the central bank also introduced four-year repo auctions, roughly on a quarterly basis, whose goal is to boost longer-term kuna lending.
The central bank wants to motivate commercial banks to offer more loans in the national currency, hampered by the fact that some 80 percent of Croatian deposits are denominated in euros.
The overnight interbank rate was quoted at 0.37percent on Friday and the one-week spot rate at 0.46 percent.
The rates are updated daily at 0900 GMT.
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