The Government of Serbia adopted Strategy for solving problematic issues and as economists forecast it will be initial point for the interest rates to start declining. According to a few analysts, it is possible to expect that loans are cheaper by 20%.
Namely, the Strategy implies development of capacity of banks and governmental institutions and bankruptcy and sale of debts from citizens will be additionally analyzed due to sensitive problem, the Ministry of Finance of Serbia said for the Beta agency.
As the Ministry of Finance adds, it is expected that solving problems of non-payable loans will affect bank cost reduction and thus fall of interest rates.
The Strategy implies bank capacity development for solving problematic loans and reoval of tax obstacles for write-off of non-payable loans, the Ministry of Finance said.
Measures for development in the field of court and extra-judicial restructuring and bankruptcy, execution and estimation of mortgaged value have been planned. After that, capacities and expertise of courts will improve as well as governmental institutions in restructuring processes, the ministry outlined and added they will make additional measures if necessary.
They added that proposed solutions are aligned with the International Monetary Fund (IMF), World Bank and the European Bank for Reconstruction and Development (EBRD) and that continuation of cooperation with these institutions in measures implementation is expected.