Governor of the National Bank of Serbia (NBS) Jorgovanka Tabakovic stated on Saturday that consultants have been selected who would perform inspections concerning overall bank operation as a requirement of the International Monetary Fund (IMF).
In an interview for the daily Vecernje Novosti, Tabakovic said that the problem of non-performing loans (NLP) cannot be solved easily or promptly having because NLPs took years to accumulate.
A sustainable solution to the problem calls for implementation of coordinated activities by a large number of institutions, which is why a working group has been constituted Tabakovic said and added that the strategy will envisage an entire set of activities that should contribute to the stabilisation instead of designation of activities or measures for individual banks.
Novosti also reported that all banks in Serbia would have to pass special diagnostic tests this year, in addition to regular controls. Entire bank operation will be examined, especially the implementation of NBS decisions concerning distribution of granted loans according to risk criteria and allocations of funds for potential losses.
The level of NLPs in Serbia is 24 percent or around EUR 3.5 billion, which constitutes one quarter of total bank fund placement.
Source; SerbGov
