Even more favourable loans to help Serbian businesses

At yesterday’s extraordinary session, the Executive Board of the National Bank of Serbia (NBS) adopted a decree on the incorporation of interest rates applied by the NBS into the monetary policy procedure, which allows for even more favourable loans in dinars, granted by banks to clients under the Guarantee Scheme (which is one of the measures to support Serbian businesses during the coronavirus pandemic).

The NBS will pay the so-called remuneration rate at an interest rate that is 0.50 percentage points higher than the standard remuneration rate, which is paid on the amount of allocated required reserves in dinars and which currently amounts to 0.10 per cent.

In order for banks to be eligible to use this preferential rate is to grant their clients dinar loans from the Guarantee Scheme at an interest rate that is at least 0.50 percentage points lower than the maximum interest rate prescribed by the Regulation for loans approved in dinars (1M BELIBOR + 2.5 percentage points).

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In this way, the NBS will compensate the banks for the reduction of the interest rate in the amount of 0.50 percentage points, and the banks will, in accordance with their business policies, be able to approve them on more favourable terms.

Banks will be obliged to report to the NBS on the number of loans approved from the Guarantee Scheme, as well as on interest rates on those loans, which ensures control over the functioning of this mechanism, the statement said.

(021.rs, 20.07.2020)


This post is also available in: Italiano

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