Croatian banks are getting nervous over 34 billion kunas (4.6 billion Euros) of loans considered to be in arrears or with repayments late three or more months, daily Jutarnji List writes.

That is three times more than in 2008 (last pre-crisis year) and two times more than in September 2009. Two thirds of these so-called bad loans are held by companies, and one third by individuals.

The total number of loans has grown 7.2 per cent since last year’s July, with the share of bad credits rising to 34.2 per cent.

Banks seem to be holding on to the money rather than giving them out to potentially risky clients, daily Jutarnji List writes. Vice-governor of Croatian National Bank (HNB) Davor Holjevac recently warned that Croatian Bank for Reconstruction and Development (HBOR) had 800 million unused kunas (107 million Euros) that have not yet been handed out as loans because the banks are not ready to accept the risks.

HNB estimates that bad credits could grow to 37 billion kunas (close to five billion Euros) by the end of the year.