The growth of credit activity in the second quarter compared to the same period last year amounted to 13.9% and was among the highest in the region, according to the latest report of the National Bank of Serbia.
It is estimated that this movement of credit activity was also influenced by the proactive action of the National Bank of Serbia, which continued to ease monetary policy and enable a delay in loan repayment to provide support to companies and citizens in the crisis caused by the coronavirus pandemic.
The growth of credit activity was also influenced by the approval of loans from the guarantee scheme.
Loans to the economy continue to contribute more to the growth of lending activity, whose year-on-year growth in June amounted to 15.9%, while the balance of loans to households in June was 12.6% higher than a year ago.
Despite the growth of loans, their share in the gross domestic product is still below the long-term trend, which indicates the fact that lending activity does not pose a risk to either price or financial stability, according to the NBS.
During the second quarter, interest rates moved close to the previously recorded lowest values, with the average price of dinar loans to households falling to a new low in June.
Loans to the economy in the second quarter increased, after excluding the effect of changes in the exchange rate. For the most part, this growth refers to loans for liquidity and working capital, to which, in addition to the growing needs of the economy for liquid assets in the conditions of the corona virus pandemic, the realization of loans from the guarantee scheme has contributed since May.
Given that these companies are the target segment of the guarantee scheme, and that they used the moratorium to a greater extent than large companies, over three-fifths of credit growth in the second quarter referred to micro, small and medium enterprises.
The balance of loans increased on the accounts of companies of all activities, and mostly with companies in the field of construction, real estate, transport and energy.
The growth of loans to households, which is usually driven by cash and housing loans, is partly the result of the application of the moratorium on loan repayment, and since May, it has been contributed by higher lending to entrepreneurs under the guarantee scheme.
The share of non-performing loans in total loans continued to decline during the second quarter and stood at 3.7% in June, the new lowest level since this asset quality indicator was monitored. Compared to March, that share is lower by 0.3 percentage points, and by 18.6 percentage points than in July 2015, that is immediately before the beginning of the implementation of the Strategy for resolving problem loans, it is written in the report on credit activity, Nova Ekonomija reports.
