Serbia Economic and FDI Outlook

• -5% -15% -25% 2014 15% 5% National Bank of Serbia Successful Implementation of Measures and Sustainability of Achieved Results - NPL Indicator Chart 39 NPL Ratio (%) 25% 25% 2015 NPL strategy 2016 2017 accounting write-off 2018 program for NPL 2019 I monthly change of NPL ratio (%, l.h.s.) NPL ratio (r.h.s.) 2020 repayment moratorium I repayment moratorium II 2021 relief in repayment 2022 agriculture reprogram 2023 20% 15% TY. 10% 5% 0% • • Source: NBS The decrease in NPL ratio by 20.18 p. p., from inherited-post-crisis period record levels (23.18%; May 2015) to as low as 3.00% (March 2023), is the result of a systematic approach to problem solving, timely implementation of adequate measures and sustainability of achieved results. The most prominent implemented regulations in terms of results are: housing loans relief 2024 Decision on accounting write-off of the bank's balance sheet assets (Official Gazette of RS 77/2017; in force since September 2017; abb. accounting write-off) • Strategy for resolving problem loans (for the period 2015-2018; Government session on August 13, 2015; abb. NPL strategy) and its successor Program for resolving problem loans (for the period 2018-2020; Government session on December 27, 2018; abb. program for NPL) 24

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