Tabakovic: NPLs at 5.5 pct - their lowest level on record

The share of NPLs in total loans declined to 5.5 pct at the end of March 2019, which is its lowest level on record, National Bank of Serbia (NBS) Governor Jorgovanka Tabakovic has said.

16 Maj 2019 12:36

BELGRADE - The share of NPLs in total loans declined to 5.5 pct at the end of March 2019, which is its lowest level on record, National Bank of Serbia (NBS) Governor Jorgovanka Tabakovic has said.

"The favourable financial conditions in the domestic market are also evidenced by movements in loan rates, which dropped to their lowest levels in the dinar segment of the market at the start of the year. The declining interest rates, coupled with the rising economic activity and positive labour market developments, contribute to the increase in lending activity.

Although the y-o-y growth in lending is measured in two digits, the share of loans in GDP is stable and poses no risk to either price or financial stability," she told a press conference at the NBS Wednesday.

"Inflation has continued to move within the bounds of the target tolerance band (3.0±1.5 pct) in 2019," she said.

"In April this year, consumer price growth equalled 3.1 pct y-o-y, with more than half of the increase attributable to the rise in the prices of vegetables on account of the low base and last year’s dampened yield in other parts of Europe as well."

"Inflationary pressures remained low on both the cost and supply sides, as attested by the core inflation of 1.4 pct in April," she said.


Photo: Tanjug/D. Goll

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