Slow solving of bad loans issue in Serbia

Resident representative of IMF in Serbia, Kim Daehaeng said on Thursday, May 14, 2015, that companies in debts previously went bankrupt due to unexpected dinar decline so the share of non-payable loans was growing but the most frustrating thing in Serbia is the fact that there is no solution for bad loans.

-When in Serbia a loan becomes problematic, it stays as such forever. It is the reason why the share of non-payable loans is so high here- Daehaengsaid after presentation of spring report of IMF for CESE Europe.

Deheng said there are a few principles for solving this problem but that tax payers should not worry.

Vice governor of NBS Diana Dragutinovic said the share of non-payable loans in Serbia before the crisis totaled some 10% and increased growth was mainly contributed with dinar decline which additionally overburdened debtors.

Dragutinovic outlined that researches of NBS, i.e. report on financial stability, show that increase of non-payable loans is mainly the consequence of dinar decline.

The official data today show that the share of non-payable loans in Serbia totals approximately 23%.