[ad_1]
The loans you take from January 1 of next year will have a shorter repayment period, that is, a maximum of six years, and that is in accordance with the regulations of the National Bank of Serbia (NBS) from the end of 2018.
The term for the repayment of consumer and cash loans that banks will grant to citizens from January will be a maximum of six years, according to the provisions of said regulations. These terms, as confirmed by the central bank, will not change, regardless of the fact that in July, the NBS enabled citizens who have loans to extend repayment terms by two years.
– In December 2018, the National Bank of Serbia adopted a set of measures aimed at encouraging the practice of sustainable retail lending, reacting to the increasingly frequent occurrence of unsecured and unintentional retail lending over unjustifiably long terms. We remind you that the main objective of these measures was to avoid negative consequences for citizens and financial stability in Serbia, if the creation of new problem loans materializes the risks inherent in uncontrolled purposeless loans to households on terms that are not in line with the risk of this type of product. NATIONAL OFFICE OF STANDARDS.
Remember that to achieve the desired goal, without significant impact on the credit market, a gradual reduction of the acceptable terms is prescribed: for loans approved during 2019 – eight years, during 2020 – seven years and loans approved as of January 1, 2021 : six years.
– In this sense, acceptable terms are established for the approval of consumer loans, cash and other loans granted to households (other than housing loans or current account deficit) for which the bank can approve these loans without affecting the capital. In order to achieve the desired objective, without a significant impact on the credit market, a gradual reduction of the acceptable terms is prescribed.
The exception is consumer loans for the purchase of motor vehicles for which a phased annual reduction in the repayment period is not foreseen, and as of January 1, 2019, the acceptable maturity of these loans is up to eight years.
These regulatory solutions encourage careful risk-taking by banks by guiding them towards sustainable loans and avoiding excessive exposure to certain types of credit products, without introducing an administrative measure that prohibits certain types of loans, the central bank says.
As you recall, in July of this year certain adjustments were made to the aforementioned measures, in order to take into account the circumstances caused by the COVID-19 pandemic.
Without destroying the meaning and conceptual concept with the reason for the adopted regulation, it opens up additional possibilities for banks to offer adequate relief to borrowers who borrowed before extraordinary circumstances occurred in relation to the repayment of consumer loans, cash and other loans approved until March 18, 2020 (refinancing or changing the due date of the last installment under certain conditions), without affecting the bank’s capital, which is determined by the fact that from that date day both the debtor and the bank are aware of the circumstances related to the pandemic and the state of emergency. It could evaluate the possibility of liquidating new obligations in the existing circumstances.
– In other words, we believe that the current crisis is more of a reason to approve new loans in accordance with the prescribed dynamics of maturity reduction and that limiting the maximum maturity in the manner prescribed by the regulations adopted in December 2018 is one of effective mechanisms to prevent over-indebtedness and the appearance of new problem loans in this loan segment.
At the same time, it should be noted that any borrowing for periods longer than prescribed is still allowed if the bank maintains the appropriate level of capital or has sufficient own funds at all times to meet all regulatory requirements, the bank said. .
(Kurir.rs/Informer)
delivery courier
Author: delivery courier
[ad_2]
