Since the crisis began, commercial banks have approved almost €300 million of new loans to citizens and economy. Banking sector has been affected by the pandemic with almost 47% decline in profit although liquidity at system level has been maintained, said Governor of the Central Bank of Montenegro, Mr Radoje Žugić.
Certain banks approved new loans which were at the same or higher level compared with the previous period, while others have recorded crediting decline.
“In the forthcoming period, strengthening volume of crediting must be brought into the focus of banks”, Mr Žugić said.
Representatives of the banking sector pointed out that reduction of credit activity recorded in some banks was a consequence of the reduction in demand for credits and delay of some investments.
After recognizing problems some sectors were faced with, some banks reacted proactively and offered businessmen considerable reliefs: longer grace periods and attractive interest rates.
Representatives of banks expressed readiness to offer their full support to sustainable economic projects and to help citizens who are faced with financial challenges through adequate restructuring models.
It was agreed at the meeting that implementation of the Law on Credit Institutions and Law on the Recovery of Banks should be delayed until a set of bylaws is adopted.
