Serbia Economic and FDI Outlook slide image

Serbia Economic and FDI Outlook

National Bank of Serbia Regulatory Assumptions were Created for Numerous Repayment Reliefs 1. Decision on temporary measures for banks related to housing loans to natural persons (until the end of 2024) For housing loans approved until the Decision came into force: for the first housing loan, with variable rate, up to EUR 200,000 gross amount, nominal part of interest rate is capped at 4.08%, that is, nominal part of interest rate from original repayment plan if the loan is approved after 31 July 2022. ✓ For housing loans approved since the measure came into force: for loans with variable interest rate, bank margin is capped at 1.1%, and loans with fixed interest rate are capped via limit to nominal part of interest rate at 5.03%. ✓ For all housing loans: early repayment enabled without penalties 2. Reliefs for first time home buyers (permanent measure) ✓ The bank may approve loan in amount of up to 90% value of mortgaged real estate, with lower weighted risk of such exposures, which encourages banks to approve loans with lower client participation 3. Relief for clients of cash, consumer and other non-purpose loans ✓ Facilitated simplified approval of consumer loans up to 90.000 RSD (measure is extended until the end of 2024) ✓ Enabled one restructuring of cash, consumer and other non-purpose loans for natural person without affecting bank capital (adopted in December 2022 as permanent measure) 4. Decision on a temporary measure related to the calculation of the bank's capital ✓ From March 2024, the banks may opt not to deduct 50% (25% from 30 September 2024) of unrealized losses on government securities issued by the Republic of Serbia, valued at fair value through other comprehensive income, from CET-1 capital (this measure is to be phased-out by 31 December 2024 with gradually decreasing the percentage of deduction) 23
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