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Asset Quality Of Real Estate Loans in Serbia

Serbia | July 13, 2014
Excel Sheet

Asset quality of loans provided to real estate companies in Serbia started to deteriorate significantly from the second quarter of 2011. While "only" a fifth of the real estate loans were qualified as non-performing at the end of March 2011 (less than 22% of total corporate loans), the ratio exceeded 45% at the end of 2012. That is compared to some 21% of total corporate loans.

Having said that, non-performing loans are well covered by loan loss provisions in Serbia. While specific provisions cover half of total non-performing loans, total provisions and reserves created exceeds 150% of total non-performing loans, according to the Central Bank of Serbia.

For more details, see indicators for Serbia in the banking section of Helgi Library at http://www.helgilibrary.com/sectors/index/banking