FOREIGN EXCHANGE >> LIGHT ON PROVISION >> DEPOSIT TRANSACTION

Deposit Transactions

Article 12
(1) Deposit transactions referred to in Article 7, paragraph 2, item 7 of this Act shall mean transactions based on deposit agreements concluded between non-residents and a bank and between residents and a non-resident financial institution.

(2) Under the terms of this Act, deposit transactions shall also include current account agreements.

Payments Based on Insurance Agreements

Article 13
Payments based on insurance agreements shall include premium payments and payments of insured amounts on the basis of insurance agreements between a non-resident insurance company and a resident as a beneficiary and a resident insurance company and a non-resident as a beneficiary.

Unilateral Transfers of Assets

Article 14
(1) Unilateral transfers of assets shall mean those transfers of assets from the Republic of Croatia abroad or from abroad to the Republic of Croatia which cannot be characterized as transaction executions between residents and non-residents and which may take the form of personal and physical transfers of assets.

(2) Personal transfers of assets shall be transfers of assets from the Republic of Croatia and into the Republic of Croatia on the basis of gifts and grants, fixed income, inheritance, settlement of immigrants’ debts in parent country, transfer of immigrants’ assets abroad and income of non-resident persons employed in the Republic of Croatia.

(3) The Croatian National Bank may, by means of a special decision, impose restrictions on transfers abroad relating to gifts and grants in accordance with the prescribed limits for physical transfers of assets.

(4) Physical transfers, under the terms of this Act, shall mean any transfer of domestic cash, foreign cash, checks and materialized securities from and into the Republic of Croatia.

Payments and Collections in Foreign Means of Payment

Article 15
Payments and collections in foreign means of payment between residents and between residents and non-residents in the Republic of Croatia shall be allowed in cases prescribed by law or a decision of the Croatian National Bank.

Foreign Exchange Accounts and
Foreign Exchange Savings Deposits Accounts of Residents

Article 16
(1) Residents may keep foreign exchange in foreign exchange accounts or in foreign exchange savings deposits accounts in banks in the Republic of Croatia. The Croatian National bank shall stipulate the conditions for and the manner of opening and maintaining foreign exchange accounts and foreign exchange savings deposits accounts.

(2) Any bank opening a foreign exchange account and taking a foreign exchange savings deposit shall be obliged to establish the identity of the relevant resident.

(3) Banks shall be obliged to keep data on foreign exchange account holders and holders of foreign exchange savings deposits accounts referred to in paragraph 1 of this Article, for five years following the closing of the account.

(4) The amount of interest and the way it is calculated and paid and the currency in which the interest and the principal are to be paid shall be laid down in an agreement concluded between the bank and the resident.

Loans in Foreign Means of Payment Between Residents
Article 17

(1) Loans in foreign means of payment may be granted to residents by banks. The loans thus granted may be repaid in foreign currency.

(2) Other residents shall not grant each other loans in foreign means of payment
.
Transactions with Derivative Financial Instruments

Article 18
(1) The provisions of this Act relating to transactions that serve as a basis for transactions with derivative financial instruments shall apply to transactions with derivative financial instruments
.
(2) The Croatian National Bank may prescribe the conditions for the carrying out of transactions with derivative financial instruments abroad .

(3) The provision of paragraph 2 of this Article shall not apply to banks, brokers, investment funds, insurance companies, pension funds and other financial institutions whose business operations are governed by special laws.