Bloomberg News

Serbian Lending Falls in June, Defaults Rise, Bank Group Says

July 11, 2012

Serbian retail lending fell 5.4 percent in June from the previous month, while the net rate of non-performing loans rose to the highest level in at least 18 months, the Serbian Bank Association said.

The volume of loans fell to 1.99 trillion dinars ($21.3 billion) from 2.1 trillion dinars at the end of May, as the corporate sector and entrepreneurs borrowed less from banks, the association representing all 33 commercial lenders in the country said in a report on its website today. The biggest drop was in the corporate sector, for which the loan total fell 8.8 percent to less than 1.3 trillion dinars.

The average rate of late payments, defined as 15 days or more behind for corporate clients and at least 60 days late for individuals, increased to 12.3 percent from 11.4 percent in May.

The net rate among individuals failing to service their mortgages, consumer and home renovation loans on time was unchanged at 4.2 percent, while the rate among companies increased to 16 percent from 14.3 percent a month earlier.

For entrepreneurs, the rate rose 50 basis points to 13.1 percent.

Credit-card debt rose 1.1 percent to 36.67 billion dinars, and the net default rate in the category dropped 30 basis points to 10.2 percent.

To contact the reporter on this story: Misha Savic in Belgrade at

To contact the editor responsible for this story: James M. Gomez at

The Aging of Abercrombie & Fitch
blog comments powered by Disqus