Tabakovic: Banks should also deal with issue of bad loans

BELGRADE - National Bank of Serbia (NBS) Governor Jorgovanka Tabakovic said on Wednesday that when resolving the issue of non-performing loans (NPLs), solutions that incur the least cost on taxpayers will be used, and noted that the NBS should not be the only one searching for a solution, but also the Association of Serbian Banks, the European Bank for Reconstruction and Development (EBRD), commercial banks.

At the presentation of the EBRD transition report, Tabakovic said that in finding a solution for NPLs, the state will strive to avoid being financially involved as much as possible.

When asked about the possibility of selling bad loans, Tabakovic said this is one of the options, but that primarily refers to corporate loans.

"We must bear in mind that there could be no loans of individuals in the secondary market," the governor said.

She underlined that the NBS is not the only financial institution that should deal with the problem, but that the efforts should also be invested by the Association of Serbian Banks, individual banks, the EBRD, among others, but also other international financial institutions with which various approaches for resolving this problem have been discussed for months.

The governor noted that the NBS will give recommendations for solving the issue of Swiss franc-denominated loans after the meeting with representatives of the banking sector scheduled to take place on Monday.

Photo Tanjug, Z. Zestic