ZAGREB: The Croatian central bank said on Tuesday it had accepted all bids from banks worth 530 million kuna ($81.34 million) at its five-year repo auction with the interest rate fixed at 1.2 percent.
The maturity date for the loans is Nov. 9, 2022.
The central bank introduced the longer-term repo operations in early 2016 to provide longer-term liquidity to local banks and encourage longer-term borrowing in local currency, in a country where more than 70 percent of loans and deposits are denominated in euros.
Last year there were four such auctions with a four-year maturity where liquidity was boosted by 993.4 million kuna. The interest rate was 1.4 percent.
This was the first five-year repo auction.
The central bank also holds weekly reverse repo auctions on Mondays as a standing facility where the current interest rate is 0.3 percent. However, amid smooth local liquidity in recent months the banks showed little interest in short-term lending.
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