National Bank of Serbia Vice Governor Diana Dragutinovic said on Thursday that the share of non-collectible loans in Serbia before the financial crisis had stood at 10 percent, and that the accelerated growth of bad loans had been influenced by the dinar’s slump.
“The largest increase in the percentage of non-collectible loans occurred between 2008 and 2009. As much as 60 percent of that increase had to do with the dinar losing value and poor economic growth,” Dragutinovic said presenting the spring monetary report by the IMF for Central, Eastern and Southeastern Europe.
Bad risk projections by the banking sector helped that in part, she pointed out.
Analysis by the National Bank of Serbia, that is its financial stability report, shows that the increase in non-collectible loans was mostly caused by the weakening of the home currency.
Official data indicate that the 23 percent of loans in Serbia are non-collectible.
Source; in Serbia
