Reconstruction should be done by domestic companies

The Committee for Financial Stability of BiH discussed the situation in the financial sector after the floods in BiH.

Governor of the Central Bank of BiH Kemal Kozarić said that instead of the expected GDP growth of 2% for this year, now after the floods it could be 0.5% after all, provided that funds remain in BiH and domestic companies work on reconstruction, writes the BiH news agency Patria.

- We expect the financial sector to help in this situation, meaning that banks, in agreement with regulators, will facilitate things for clients affected by the floods - said Kozarić.

He stated that banks in BiH have two billion KM in liquid reserves, and that banks should assist citizens in rebuilding their homes.

- We also discussed the possibility of a moratorium for natural and legal persons until 30.06.2015, which would come into effect by 30.06.2014. Clients would be obliged to document the damages - said Kozarić.

He also said that among the analyzed banks, there are four that could have problems with capital, and an increase in non-performing loans of 20% is expected.

- As for commercial banks, they will regulate their relationship with clients individually - said Kozarić, writes NAP.