NBS removed limitations on crediting of citizens

National Bank of Serbia (NBS) announced today (June 8, 2009) that the Monetary Board had removed the limitations concerning the approval of loans and repayment periods for cash loans.

NBS's decision in June 2006 set the limit for approval of overall loans to citizens at 200% of a bank's basic capital.

The Monetary Board estimated that the banks had increased their basic capital from 142.7 to 391 billion RSD in the period between September 2006 and end of April 2009, and that there was no need for such measure any more.

In addition, due to deceleration of demand and reduced economic activities caused by the economic crisis, the Monetary Board has removed the limitations concerning the repayment periods for cash loans. The maximum repayment period for cash loans was shortened to two years.

These decisions will be put in effect one day after they are announced in the Official Bulletin of RS.