Corporate clients paying off installments – NPLs of enterprises reduced by about 3%
Increased dinar debts, arising from favorable loans taken out by enterprises, have contributed to an easier loan repayment. Until recently, most companies took out loans in euros, due to lower interest rates. Now that the banks have adjusted their dinar loan prices, businessmen can incur debt in the local currency under favorable conditions as well. This has lead to a growth in dinar loans to companies by 25%.
– The average interest rate on dinar loans taken out by enterprises is 6% – the NBS says. – The most prominent price reduction is evident in investment loans, making them equal to working capital loans. The reduction of financing costs in the corporate sector contributes to improved business results, which further stimulates involvement in new investment projects.
According to banks, corporate loan conditions are more favorable due to lower margins and accompanying costs, along with longer repayment periods. Corporate loan demands are growing, both for working capital financing and debt restructuring.
All of this contributes to the reduction of NPLs. Banks are prepared to write-off NPLs in order to clean their balances.
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