Bosnias bank lending up by 4.7% in April.

By bne IntelliNews May 31, 2011
Bosnia's commercial banks extended KM 14.8bn (EUR 7.6bn) in loans in April, which is an increase by 4.7% y/y, the central bank reported. The expansion rate remained flat m/m. The household sector, accounting for 42.5% of all extended credits, increased its indebtedness by 1.2% y/y, after a 0.7% y/y rise in March. the loans to private enterprises rose by 6.2% y/y, after surging by 6.4% in the previous month. The sector increased further its share in the overall provided loans to 48.6% from 47.9% a year earlier. The governments at all levels (central, entity and local) reported a 37.2% y/y hike of incurred loans in the month against the 37.6% y/y expansion at end-March in our calculations. It should be noted that the government has a relatively low share in the overall credit portfolio of the lenders 3.3% as at end-April. In monthly terms, the extended credits rose by 0.1% after the 1.1% m/m growth in the previous month. The stock of the extended credits rose by 1.6% since the beginning of the year. IntelliNews comment: Banking credits have been rising for nine consecutive months already. We believe that the trend will continue in the coming months, supported by the gradual recovery of the economy and also because of the low basis from 2010. Both the private business and the households are likely to increase their indebtedness, while some potential fiscal consolidation following the establishment of central and entities governments might result in a slight decline of the public indebtedness. Still, the latter is unlikely to happen before the second half of the year.

Bosnias bank lending up by 4.7% in April.

Related Articles

EUs Sannino invites Bosnian leaders for conciliatory talks on March 22.

The European Commissions director general for enlargement Stefano Sannino has invited the leaders of Bosnias seven main political parties for consultations in Brussels on March 22 in an attempt ... more

Bosnias Serb Republic PPI, CPI inflation eases in Feb 2013.

Growth of consumer prices in Bosnias Serb Republic eased to 0.9% y/y in February from 1.5% y/y in January, as the annual decline of clothing and footwear prices widened, the entitys statistics ... more

Bosnias Federation fails to sell 67% of engineering company Hidrogradnja.

Bosnias Federation has failed to sell its 67% stake in engineering company Hidrogradnja due to lack of investor interest, the entitys privatisation agency said in a statement. The remaining 33% ... more