Montenegro's public debt rises 16.9% y/y to 1.71bn in end-Sept 2012

By bne IntelliNews January 11, 2013
The weighted average effective lending interest rate on newly extended loans fell to 11.04% in Nov 2012 from 11.32% a month earlier as both rates on new household and corporate loans declined in monthly terms, central bank data showed. However, November's average effective lending interest rate was higher compared to the end of 2011 when it stood at 9.64%. Rates on new corporate loans rose by 0.81pps to 10.46% in Nov compared to the end of 2011. The increase of rates on household loans was smaller (up 0.19pps to 11.95% over the period). Volume of new loans dropped by a monthly 12.6% to EUR 45.5mn in November following a 18% m/m increase in October. Compared to Dec 2011, newly extended loans decreased by close to 70% mainly due to falling corporate loans (down by 74% to EUR 26mn in Nov). Lending activity in Montenegro has been declining in annual terms since May 2009 as interest rates remained high partly reflecting uncertain local environment. In November 2012, the Montenegrin central bank (CBCG) introduced a ceiling on the effective interest rate on new corporate (at 14%) and household (at 15%) loans in an attempt to limit excessive lending rates. According to the CBCG, high lending interest rates contribute to increase the level of non-performing loans and hamper real sector liquidity as well as the overall financial sector stability. In Jan-Sep 2012, 22% of new household loans were approved at an interest rate higher than 15% while 33.2% of new corporate loans were extended at an interest rate above 15%.
Read in IntelliNews Pro
Get IntelliNews Pro

Related Articles

Montenegro says to borrow EUR 220mn this year, down 12% than planned.

Montenegro's government said it decided on Thursday, March 21, to reduce to EUR 220mn from EUR 250mn the amount it plans to borrow this year for financing its budget spending and servicing ... more

Montenegro reports increased budget revenue in Q1.

Montenegro's budget revenue increased by 11.5% y/y to EUR 195mn in the period from January 1 to March 20 due to higher profit tax, social contributions and VAT inflows, news service ... more

Mobile phone penetration in Montenegro drops to 155.5% in Feb 2013.

Mobile phone penetration in Montenegro dropped to 155.5% at the end of February 2013, from 159.81% at end-Dec 2012 and 163.66% a year earlier, the latest figures of the telecommunications agency ... more

Follow Us On

Most Read

  1. Ukraine's birth rate plummets to 300-year low as country’s population collapses
    7 days ago
  2. EU finally boosts defence investment into arms production as Ukraine runs out of ammo
    1 month ago
  3. Fresh evidence suggests that the April 2022 Istanbul peace deal to end the war in Ukraine was stillborn
    7 days ago
  4. Don't mention the "D" word - Ukraine
    4 days ago
  5. UBN: The US Needs to Wake Up
    5 days ago
  1. Russia could pay off its entire external debt tomorrow, in cash
    25 days ago
  2. Speculation swirls of “Men in Blue” in Crocus City Hall terrorist attack linked to FSB
    29 days ago
  3. Albanians campaign on social media to keep bus bridge created in freak accident
    1 year ago
  4. BRICS announce a blockchain-based payment system to create a common currency
    28 days ago
  5. Saudi Arabia to scale back plans for Neom city
    15 days ago

Reports

Dismiss