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Real estate worth €3.4bn pledged as security for loans

Centralna banka Crne Gore

According to the Central Bank of Montenegro, CBCG, for loans worth €2.94 billion, the total value of houses, flats and land pledged as security for loans was €3.4 billion. In addition, last week, the CBCG decided to abolish collateral as a criterion for loan classification, reported Pobjeda, a daily.

According to latest data, non-performing loans and collected claims at the level of the system were 4.75% of the total loans and claims. As for the non-performing loans in the Montenegrin banks, the CBCG explained: “Of the total of 13 banks operating in Montenegro, five have a share of non-performing loans in total loans higher than the average.”

The decision on minimum standards for credit risk management in banks, which abolished collateral as a criterion for the classification of loans, will enter into force in 5 months.

“The decision on amendments to the Decision on Minimum Standards for Credit Risk Management in Banks, adopted by the Council of the CBCG on 23 July, shall become applicable from January 2020,“ the CBCG announced.

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