Loans to clients are based on the range of their assets in the Bank, and other transactions which they carry out through the Bank. Monthly instalments are contracted for loans extended for up to one year, as well as for those exceeding one year. Similar rates of increase were recorded in all branches of business activities. The number of loans has continued to grow in 1995. We extend loans with variable interest rates.
Interest is charged on a monthly basis.
However, I hope that we will manage to gain the required guarantee capital over a longer period than we expected through successful business operations. Mr Butorac expects the bank's operations in 1995 to be significantly affected by the failure of the tourism season. Although the Bank has operated a very selective credit policy, some of our clients have overdue and unpaid loans. Furthermore, the price of capital is lower this year than in 1994, which means that our revenues are also lower. Hence we will not achieve results as high as last year's, although we have continuously widened our range of activities.