The objective of macro-prudential policy adopted by the Central Bank is not to restrict cash loans but to allow their sustainable granting in order to avoid potential systemic risks which might contribute to the increase in non-performing loans.
“Having in mind the above-mentioned, it is expected that banks would find the way to animate new users of their loans,” the Central Bank of Montenegro, CBCG, told Dnevne Novine daily.
They also explain that this does not mean the citizens won’t be granted cash loans anymore but rather better requirements for cash loans along with longer maturity date – over 6 and 8 years.
“It should be noted that all the citizens having non-guarantor loans with the payment deadline of more than six and eight years won’t have any consequences, that is, they won’t be required any guarantee from banks or an early repayment of a loan,” CBCG explained.
They expect significant reduction of systemic risk arising from the expansive growth of long-term non-performing cash loans, and that the latest measure will contribute to the sustainable loan granting.
