The crisis is not yet visible in loan repayment. Citizens and the economy continue to settle their obligations regularly and there is still no delay in repaying loans. Despite the increase in interest rates and consequently the increasing monthly debts for debt repayment
According to data from the Association of Banks (UBS), at the end of November, the share of delinquencies in total bank loans amounted to only 2.8 percent. A year earlier, 3.1 percent, and ten years ago, over 12 percent.
In order to prevent the growth of loans with repayment problems, the National Bank last week gave commercial banks and debtors the option to prolong, or refinance, the obligations of those who fall into difficulties. In the case of cash loans, an additional term of three years is granted, as for car loans, and in the case of housing loans, an additional term of five years. Since for now there are no major problems with repayments, the move of the National Bank is interpreted as a preventive measure.
Until now, banks have been able to meet debtors and “stretch out” the loan repayment within the stipulated terms, which in the case of cash loans means that the loan can be repaid for a maximum of six years. These are loans for refinancing, and the banks say that, since the interest rates started to rise, there is no particular greater interest in this type of loans compared to the earlier period.
Refinancing loans is a good option for those whose debt has become too heavy, because with an additional repayment term, they get a smaller monthly obligation. However, in the end, he will pay more money to the bank, because interest accrues on the new repayment term.
The rise In interest rates has another side, which is that both citizens and the economy have become more cautious when borrowing. It can be seen from the data for November that there was no credit growth. And that the credit debt of all debtors was almost the same in dinars at the end of November and at the end of October. Namely, the citizens and the economy owed the banks almost 3,342 billion dinars.
There is a slight decrease in indebtedness of legal entities and entrepreneurs of 0.3 and 0.5 percent, while household loans grew by a similar percentage. Observed on an annual basis, a 7.4 percent increase in loans was observed, because in most of this year, interest rates were still low and attractive for borrowing.
The population owes 1,421 billion dinars, the economy 1,848 billion dinars, and entrepreneurs 71 billion dinars.
The fact that citizens have “stuck” with borrowing can be seen with individual types of loans. The decline in newly approved loans can also be seen in cash, consumer, in the category of others, which are mostly refinancing. On a monthly basis, growth of less than one percent exists only in housing loans and renovation loans. Bankers say that it is about finalizing previously submitted requests, because the procedures for these loans are longer. As for the new requests, they say they have a drop of as much as 40 percent compared to the same period last year, kamatica writes.
