08.11.2019

Preparing for the future of NPL market

Considering that non-performing loans have been recognized as a hindrance to further economic prosperity, monitoring the level and trend of non-performing loans (NPLs) is crucial for identifying potential as these loans and the indicators associated with them provide an insight into the capacity of the market to absorb losses arising from NPLs and the strength of the country’s banking sector.

A slowdown in the pace of NPL transaction activity in the CEE region has been recorded together with continuously declining NPL portfolios. International and domestic NPL investors keep an eye on relatively unexploited markets with potential future deal flow like Ukraine, Bosnia and Herzegovina and Albania and Montenegro where no major loan sales activity has been seen so far.

In Serbia, the share of NPLs in total loans declined to 5.2% at end-June 2019, which is the lowest level since 2008 when this indicator of portfolio quality was introduced.

Finally, the policies adopted in the context of NPL management and resolution can have a major influence not only on banks, but also on borrowers and taxpayers, which makes this topic extremely important for the economic stability of every country.

Being aware of importance of this dynamic landscape Banking & Finance team at Aleksić & Associates will attend 2019 SEE NPL Forum, 22nd November in Belgrade. For any information regarding distressed assets, NPLs, loan portfolios and debt collection, don’t hesitate to contact us or join us at SEE NPL Forum.