Serbia’s NPL ratio falls to the lowest level since January 2009

Serbia’s NPL ratio falls to the lowest level since January 2009
By bne IntelliNews December 10, 2017

The share of gross non-performing loans (NPLs) held by Serbian banks decreased to 12.2% through September, reaching its lowest level since January 2009, according to the newest data from Serbia’s central bank, the National Bank of Serbia (NBS), released on December 8.

The NBS claims that the implementation of its NPL Resolution Strategy, adopted in August 2015, continues to yield good results, as the latest data shows the NPL ratio has decreased by 10.1pp against August 2015.

The strategy, adopted in coordination with the World Bank, the European Bank for Reconstruction and Development (EBRD) and the International Monetary Fund (IMF), aims to resolve the issue in a long-term and sustainable way. Its goal is also to improve mechanisms for resolving corporate debt through the court system.

At the end of 2016, the NPL ratio stood at 17%, 4.6% pp down against end-2015, according to the NBS.

The central bank said that the share of NPLs in total corporate loans at end-Q3 stood at 13.2%, declining from 15.9% at end-Q2 and 17.1% at end-Q1. The share of NPLs among total retail loans decreased to 6.1% through Q3, from 8.2% at end-Q2 when it went down from 8.9% at end-Q1.

 

Data

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