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05/02/2019

Bearing in mind the public's interest regarding the level and development of non-performing loans, the Central Bank of Montenegro issues the following

MEDIA STATEMENT

According to the latest data, the share of non-performing loans (NPL) in total loans as at 31 December 2018 was 6.91% and was lower by 0.4 percentage points compared to end-November 2018, when the NPL share was 6.95%. 

The aforementioned implies that the introduction of the interim administration in Atlas Bank and IBM Bank (7 December 2018) did not disturb the declining trend of the NPL, which was present throughout 2018. Specifically, as at 31 December 2017, the NPL at the system level was 7.29%.  

Reducing the share of non-performing loans increases banks' potential for lending activity growth, which, indirectly, positively affects the interest rates development, support of the real economy and expansion of the economic base.