The Executive Board of the National Bank of Serbia (NBS) adopted a decision at an extraordinary session, which created conditions for citizens to have easier access to financial resources, and it is expected that the implementation will begin at the end of the month, the central bank announced.
The decision on temporary measures for banks in order to facilitate access to financing for individuals prescribes three sets of temporary measures that should enable easier access of the population to housing loans, and thus provide support to the economy.
As stated in the announcement, this will specifically support the construction industry, through faster turnover of funds, then the possibility of extending the payment period for housing loans to a maximum of five years and temporarily easing the procedure for access of the population to short-term dinar loans up to a certain amount.
The decision aims to encourage future economic growth and prevent the potential negative effects of the coronavirus pandemic on the population and the economy, while preserving financial stability, the statement said.
The first measure refers to the approval of new housing loans from new construction to the population.
The subject of housing loans through the newly adopted preferential treatment, in addition to fully built apartments, can be residential real estate – facilities under construction, regardless of the degree of completion, if it is a project financing of the bank, where the Construction Directorate of Serbia is a building permit or within the measures of state support to certain categories of natural persons.
Also, it can be facilities under construction that have been completed at least 60 percent, if it is a project financing of another bank or a project of a legal entity investor.
Instead of the usual minimum level of construction of the facility of 80 percent, the purchase of which could be financed with housing loans from banks, the measure gave incentives to banks to approve housing loans without waiting for the completion of housing in full or to the greatest extent.
In order to provide funds for these purposes, it is envisaged that banks will use part of the funds in the form of capital, ie certain protective layers of capital that they otherwise allocate, to finance this form of lending.
The second measure is aimed at easing the conditions for repayment of housing loans to citizens, especially those who will potentially face reduced or uncertain incomes in the coming period, as well as to citizens who want to settle their obligations in the longer term than originally planned.
During this and next year, banks are allowed to offer relief to debtors who borrowed before the decision takes effect by extending the repayment period of housing loans for a maximum of five years, without changing or worsening the status of debtors in repaying those loans.
Also, a regulatory solution was introduced that gives a bank the opportunity to grant a loan to an individual who does not receive a salary or pension through an account in that bank in the amount of up to 90,000 dinars with a maturity of up to two years, so as relevant evidence of employment and pension in the last three months, accept the signed statement of that debtor on these facts, given under full criminal and material responsibility.
Banks will be able to apply the adopted set of measures by the end of 2021, and the decision will enter into force on the eighth day after its publication in the Official Gazette, and will be published by the end of this week, so its implementation is expected by the end of this month, BizLife reports.
