Loans to the economy in the second quarter decreased by EUR 11 million or 0.1 percent, which represents a smaller decline compared to the first quarter.
The latest data from the analysis of the National Bank of Serbia (NBS) show that the year-on-year growth rate of loans to the economy, after a long period of slow growth, entered the negative zone during the second quarter, and in June the balance of loans to the economy was 1.1 percent lower than a year ago.
During the second quarter, the economy mostly used loans for liquidity and working capital (63.8 percent), with slightly more than half of those loans used by micro, small and medium-sized enterprises. Investment loans accounted for 20.3 percent of new loans to the economy, with micro, small and medium enterprises accounting for 75.6 percent of these loans.
“If sales decline, then the company can operate with the money it already has, so it does not need a loan. On the other hand, in the conditions of inflation, banks tighten the conditions for lending and do not grant loans easily to everyone. This does not mean that the client is bad, but that the bank does not want to enter into risky business”, explains Kovačević.
The NBS analysis shows that loans to large companies decreased, while borrowing by micro and medium-sized companies increased. Observed by activities, the borrowing of companies from the processing industry and energy decreased, while lending to construction companies and companies from the field of real estate business increased the most.
“Micro and medium-sized enterprises are a kind of nursery, it is normal for them to take risks. A large number of these new companies fail in the first year, but that’s why they have big ambitions, so they start with the help of loans and hope that they will succeed”, assesses Kovačević. Also, according to the NBS report, in order to mitigate inflationary pressures, interest rates on loans for all purposes recorded growth in the second quarter.
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