Bloomberg News

Serbian Lending Expands on Corporate Borrowing, Defaults Stable

November 27, 2012

Serbian bank lending rose to the highest level in two years in October, as loan growth to companies outweighed a drop in household borrowing, the Belgrade-based Association of Serbian Banks said.

The loan volume increased 1.4 percent to more than 2.2 trillion dinars ($25.4 billion), as lending to companies rose 2.3 percent and to entrepreneurs 4.4 percent from the previous month, the association’s Secretary General Veroljub Dugalic told reporters in Belgrade today.

Borrowing by individuals, including consumer, mortgage and agriculture loans, fell 1.13 percent to 602.7 billion dinars, while credit-card debt fell 0.3 percent to 37.7 billion dinars.

“For the first time in more than six years, individuals and households repaid more than they borrowed from banks in all categories excluding cash loans,” Dugalic said, presenting the Association’s monthly credit activity report.

The average net rate of non-performing loans was unchanged at 13.5 percent in October, the data showed. Defined as payments falling 15 days behind or more for companies, and 60 days or longer among individuals, the rate rose to 4.4 percent for individuals from 4.3 percent. It fell 20 basis points each for companies to 17 percent and entrepreneurs to 13 percent.

-With assistance from Gordana Filipovic in Belgrade.

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

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

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