NPLs on decline in Serbia - Positive influence of government strategy, NBS and banks' business policy

The share of non-performing loans to the economy and citizens in total lendings has dropped below 20% for the first time in a while - to 19.9%, Veroljub Dugalic, the secretary general of the Association of Banks of Serbia (UBS), said Wednesday.

- The result is not sensational, but the unfavorable tendency is finally stopped. Now we can see the share of NPLs reducing - said Dugalic.

He admitted that the share of NPLs was still big, but he stressed that a positive trend of continuous decrease was encouraging.

- Before the crisis, in 2007 and 2008, NPLs accounted for only 4.7%, and then the growth began. Now that trend is finally reversed and we hope for better results in the future - said Dugalic.

According to him, the situation with non-performing loans is improved thanks to numerous factors, one of which is the government strategy for resolving the problem of NPLs.

- The measures taken by the Government and the National Bank of Serbia (NBS) and the business policy of banks have all had a positive effect on NPLs - said the secretary general of UBS.

Udruženje banaka Srbije

Narodna banka Srbije Beograd

Vlada Republike Srbije

share of non performing loans

Veroljub Dugalic

NBS

bad loans

NPL

sale of NPLs

loan repayment