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Banks don’t have any extra profit

Bratislav Pejaković (Foto: Portal Analitika)

Secretary General of the Association of Banks, Mr Bratislav Pejaković, says that banks haven’t got extra profit, as there’s no increase in nominal interest, no penalty interest, no charges for the new annuity plan. He points out that moratorium on loans was approved in only 12 countries. Commenting on negative views on the moratorium, Mr Pejaković explains that there are many interpretations which he would like to be product of insufficient amount of information and lack of understanding. He adds that negative campaign is much more appealing.

What’s your comment on the reactions on the banks’ activities taken in the period of pandemic?

Mr Pejaković: Political confrontations without grounds and without desire to notice the solidarity of the banking system should not be practiced in this period. For a very short period of time, banks have directly paid €495.000 to the National Coordination Body. Through donation of the shareholder of Universal Bank, Mr Petros Stathis, medical equipment worth €1,5 million has been donated as well.

Capitalization of regular interest at the end of moratorium is a standard and practice of all banks in the world, as well as of international institutions.

Are we richer or do we have greater reserves or are we operating in a richer country and economy so that we can act in contravention of standards and jeopardize operation of banks after moratorium? For three months, banks have immobilization of €1,3 billion. These funds are not proportionately taken back to bank channels.

Apart from that, in March this year, banks have placed €73,4 million for clients, with many guarantees and other requests.

How many clients have used the right to moratorium so far?

Mr Pejaković: Our banks have suspended debts of almost 62.000 clients, which is a total of €1,3 billion. Once again I stress that neither interest nor principal are charged during the moratorium and calculation of penalty interest is forbidden as well. After the moratorium expires, nominal interest belonging to the main debt is added to the beginning of the moratorium and new annuity plan is being made.

Do banks have some extra profit in this period?

Mr Pejaković: There’s no extra profit. How can there be if there’s no increase in the nominal interest, no penalty interest, no charges for the new annuity plan.

Is interest on interest calculated?

Mr Pejaković: We can talk about that if we have delays in payments. The present situation can’t be brought onto the moratorium context and I don’t understand why somebody would want to confuse the public.

How do you explain negative views on these issues?

Mr Pejaković: There are many interpretations but I would like to see them all as product of insufficient amount of information and lack of understanding. Besides, negative campaign is much more appealing when it comes to banks.

Moratorium and Government’s measures have produced great results for a very short period of time. According to experts, the moratorium has been designed in optimal way and has as an aim to relax clients. Everything has been done in accordance with international standards.

 

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