Citizens and businessmen on the territory of the Federation can request some kind of moratorium on loan repayment from their banks by the end of the year. Jasmin Mahmuzić, director of the FB&H Banking Agency, said that in an interview for "Avaz".
He added that the Agency reminds banks and other entities about the importance of acting upon the decision and in accordance with the deadlines specified in the decision.
- The measures defined by the decision are aimed to establish sustainable payment modalities for clients suffering from the economic consequences of a pandemic. After the expiration of individual measures, after a period of 6 or 12 months, depending on whether it is a moratorium or a grace period, the application of regular decisions and the current regulatory framework continues - Mahmuzić explained.
According to him, clients who had the opportunity to use some of the measures are expected to establish regular payment of obligations.
- It is certain that some clients may have long-term consequences of economic disruptions. In cases of long-term impaired or changed solvency, there is still the possibility of contracting new repayment plans, but it will be mandatory to reclassify such loans into the category of non-performing assets (bad loans) - he said.
Mahmuzić points out that in the third quarter there was a partial recovery of the economy, which had effects on the share of loans under special measures.
- According to the data related to the end of October this year, 7.2 percent of the total portfolio of banks is under some of the temporary measures. According to the target groups, 11.3 percent of the corporate portfolio and 2.7 percent of the retail portfolio use some of the temporary measures. The stability of the banking system has been preserved, as a result of the previous and current activities of the FB&H Banking Agency - Mahmuzić emphasized.
He added that the measures were aimed at stabilizing the situation on the market, reducing the negative economic consequences of the pandemic on the economy, citizens and banks.
- According to the indicators at the end of the third quarter of this year, the high level of liquidity and capitalization of banks in the system is maintained. As expected, the profitability of banks has been reduced, and a significant part of the negative effects can be expected in the next year, even if there is an accelerated recovery of the economy - concluded Mahmuzić.
The importance of intensive communication
- We continuously mention the importance of intensive communication between banks, businessmen, relevant associations, institutions and ministries. The measures adopted by the Banking Agency provide enough space for other entities and institutions to act, especially in terms of important preparations for supporting the economy in the period of expected recovery - Mahmuzić believes.