Croatia counters liquidity tensions

The Croatian National Bank on Thursday cut its reserve requirement by three basis points in a bid to ease liquidity strains.

The reduction, which leaves the reserve requirement at 14%, is expected to free up HRK5.9 billion ($1.04 billion) for the banking system.

The central bank said the move would ease liquidity conditions "for both small and large banks, facilitating the government's needs from the domestic market, without squeezing out economic entities from the sources of crediting."


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