New legal framework and practical issues for non-performing loans in Serbia
Non-performing loans (NPLs) have steadily risen in Serbia over the last several years. According to the latest report on the banking sector from the National Bank of Serbia (NBS), NPLs to total gross loans have risen between the second and third quarters of 2012 from 19.5% to 19.9%, and the total volume of NPLs in the third quarter of 2012 was RSD 399.5 billion (approximately EUR 3.56 billion). 59% of the NPLs were granted to companies both in the private and public sector, and more than 80% of the corporate NPLs in the private sector were related to the construction and real estate industries, again rising by 6% over the second quarter of 2012. The rising level of NPLs adversely affects the financial results and capital of banks, thus leading to increased credit risk.
Faced with this problem, the NBS amended the Decision on Risk Management of Banks (“Official Gazette of the Republic of Serbia”, nos. 45/2011, 94/2011, 119/2012 and 123/2012) in December 2012, effective as of 31 December 2012. Amendments to the Risk Management Decision allowed for the possibility of assignment of receivables from NPLs granted to legal entities by the bank to any legal entity, provided that these receivables are due for payment…
Click on the link below to read the rest of the Karanovic & Nikolic briefing.
Sign in or Register to continue reading this article
It's quick, easy and free!
It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.Register now
Why register to The Lawyer
In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.
Identify the major players and business opportunities within a particular region through our series of free, special reports.
Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.
More relevant to you
To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.
News from Karanovic & Nikolic
News from The Lawyer
Briefings from Karanovic & Nikolic
The services local CROs provide to foreign affiliates do not qualify as services to clinical trials.
Russia is unlikely to sit idly by as the EU plans new energy corridor.
Analysis from The Lawyer
‘Exotic’ investors and opportunities for legal work beyond M&A feature in The Lawyer’s high-level roundtable debate on south-east Europe
Croatia is about to enter the EU, but the path to integration may not be smooth for the Balkan states