The Association of Serbian Banks estimated that the insurance of housing loans with the National Corporation for Insurance of Housing Loans (NKOSK) can bring great benefits to citizens.
Insurance of housing loans with the National Corporation for Insurance of Housing Loans, as announced by the Association, is a legal procedure, introduced by the Law on NMIC from 2004 and confirmed by the decisions of the National Bank of Serbia.
“Housing loan insurance was introduced by the state of Serbia with an understandable intention to make it easier for Serbian citizens to obtain loans. Loans secured by NMIC for the client are far cheaper than loans without this insurance,” it is emphasized in the announcement.
As an example, the Association cites a loan in the amount of 50 thousand euros in 300 monthly installments.
“The difference in the installment between the secured and unsecured loan is 20 euros per month. In total, the client who takes a loan secured by NMIC will pay 6,020 euros less than if the loan was not secured. It will have a cost of 875 euros to secure the loan,” states the Association of Banks.
The association states that the insurance of housing loans has led to a reduction in the price of loans and thus to the possibility for a large number of Serbian citizens to solve their housing issue.
“The same measure has accelerated the real estate market as well as the activation of the construction industry. With the campaign against NMIC and the banks, that situation can change. Retroactive change of long-agreed and realized business relations sends a very bad message to foreign and domestic investors. Business security is the most important for past and future investments, and the aforementioned campaign and lawsuits do not support that,” claim the Association of Banks.
They estimate that “the new wave of lawsuits will not only affect the banks, but also the entire court system and all citizens and companies that need to solve a certain problem in court.”
“Banks will continue to defend this position not only in public, but also before the judiciary, with the conviction that the decisions of the competent authorities will be made in accordance with the laws of the Republic of Serbia and the decisions of the relevant monetary authorities,” the Association of Banks concluded, Bonitet reports.
