NBS: The problem of NPLs to be resolved in a little over six years

Vladimir Petrovic, the director of the Macroprudential Supervision Department at the National Bank of Serbia (NBS), said on Wednesday, July 27, that the measures taken by the central bank had started giving results and that the solution to the problem of NPLs could be expected in a little over six years.

At the press conference, Petrovic reminded that the NPL Resolution Strategy and two action plans had been adopted three years before and that the action plan regarding the NBS had been completed.

The effects of the implementation of the plan, according to him, are not that visible at the moment, but they will be in the future.

Petrovic emphasized that the number of NPLs had been reduced by 2% from the end of August 2015 till the end of may 2016, a large amount in his estimate.

The current share of NPLs is around 20%, and judging by the effects of the measures taken, the problem of NPLs might be fully resolved in a little over six years.

The vice governor of NBS, Dijana Dragutinovic, added that NPLs in the banking sector are the same as scraps in the textile industry, something that can't be fully removed.

– It's not possible to never have non-performing loans, they can't be brought down to nothing, but it's great when their share doesn't exceed 5% – Dragutinovic explained.

Narodna banka Srbije Beograd

NPL

Vladimir Petrovic

NPL Resolution Strategy

non performing loans

NBS

central bank measures