The Central Bank performed an analysis of the movement of cash non-purpose unsecured loans and loans secured by promissory notes, which showed that despite the positive trends, it is necessary to continue the measure related to the approval of this type of loans to citizens.
The limit on unsecured cash loans to citizens has been in effect since January 2020, and at the last session, the CBCG Council decided to extend it this year as well.
In a period of three years, according to data from the CBCG; these loans in the net amount were reduced by 148,6 million, and their participation in total loans decreased from 25,25 percent to 17,55 percent for the same time period.
"CBCG, on the basis of data at its disposal and submitted by credit institutions, performed an analysis of systemic trends in cash non-purpose unsecured loans and loans secured by promissory notes. Regardless of the positive trends achieved in the past period of validity of the aforementioned decision, the CBCG, based on the results of the analysis, made a decision that would continue to limit the space and risk for the placement of this type of cash loans. Positive trends in the reduction of this type of lending are not represented by all credit institutions where the risk is still present, which together with the amount of NPL of these loans at some credit institutions, which is higher than the average at the level of the system, indicates the need for increased monitoring of this lending segment and in future period", explained the supreme monetary institution.
According to CBCG data, the total amount of non-purpose cash loans amounted to EUR 2019 million at the end of December 707,3, and EUR 558,7 million at the end of October last year, which represents a nominal decrease of EUR 148,6 million.
"Regardless of the growth of gross loans in the period from the adoption of the decision until October 31, 2022 at the system level of 13,69 percent, total non-purpose cash loans recorded a decrease of 21,01 percent. The share of this type of loan in total loans decreased from 25,25 percent to 17,55 percent in this period," said the CBCG.
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