The Association of Banks (UBCG) will send a letter to the Council of the Central Bank (CBCG) in which they will request that the new stricter measures for granting cash loans to citizens be postponed for the next year, which will mean that banks are looking for better quality funds for their clients compared to the current ones.
This, "Vijesti" unofficially learns, was agreed upon yesterday at a meeting held by the UBCG with the director of the sector for bank control in the CBCG, Dejan Vujacic.
Sources from the meeting told "Vijesti" that the bankers told Vujačić that they are not opposed to the planned measures to limit cash loans to citizens, but that the deadline for their implementation (November 15 this year) is problematic.
According to the measures of the CBCG, it is written in the draft decision, it will be defined that the bank can grant a citizen a cash loan with a repayment period of more than eight years, only if the loan is fully secured by a mortgage on real estate or a fiduciary (an insurance instrument that is similar to a mortgage, only that with a fiduciary the bank takes ownership of the object of lending, and in the case of a mortgage, it retains the right of ownership of the property), then by pledging movable property or financial instruments that are recognized as financial collateral or a guarantee. In addition, banks that have the total amount of cash loans granted to citizens with a remaining repayment term of more than six years greater than 50 percent of their own funds, cannot approve loans with a repayment term of more than six years, except for loans secured by collateral that will be required for cash loans. loans with a repayment term longer than eight years.
According to data from the websites of Montenegrin banks, cash loans can be obtained in the amount of up to 30.000 euros with a repayment period of up to 10 years.
"The postponement of the deadline was requested so that the bank budgets could be adjusted. For some banks, these are the main products and a replacement for them should be sought. These measures would affect, as Vujacic explained, five systemic banks, three in particular, while smaller banks would not suffer much damage. It was proposed that the measures be uniform for all banks. This is to prevent a situation where some banks can approve a loan for six years and some for eight years, because in that case clients would also go to places with more favorable conditions and thus some banks would lose their clients. There was a proposal to meet for a period of seven years", the participants of the meeting told "Vijesta".
Vujacic said that the situation is not alarming, but that they must act preventively. He suggested the bankers to put their proposals on paper and to send them to the Council of the Central Bank of Montenegro for an opinion on them.
"Vujacic said that these would be temporary measures for a period of two years," said "Vijesti" sources.
For a long time, cash loans have been one of the most sought-after banking products that citizens take out for various needs and that do not require extensive documentation, but can be approved in a few days. As for the documentation, together with the loan application, an administrative ban on salary and a promissory note are sufficient. In addition, in the future, for these loans, citizens will have to attach a mortgage on real estate, a pledge on movable property, a guarantee...
Loans to individuals (residents, credit cards and entrepreneurs) amount to 1,3 billion, or 43 percent of the banks' loan portfolio. In total, approved non-purpose cash loans to the population amount to EUR 678,5 million.
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