Radončić requests interest rate of 1 percent: 24,000 clients sought loan moratorium

(Patria) - SBB President Fahrudin Radončić spoke today with the Director of the Banking Agency of the Federation of Bosnia and Herzegovina, Jasmin Mahmuzić. On this occasion, Radončić informed Mahmuzić that he was approached by an exceptionally large number of businessmen and citizens who are unable to meet their loan obligations under current conditions.

Given that deposits in commercial banks amount to 19.4 billion KM, and that more than 95% of these are deposits of citizens, companies, and institutions of Bosnia and Herzegovina, Radončić emphasized his request for the Banking Agency of the Federation of Bosnia and Herzegovina, together with commercial banks, to find a concept to help in this situation.

Radončić pointed out that the profit of 15 banks last year amounted to 273 million KM.

Around 24,000 clients have requested a deferral of their obligations to banks. The vast majority are citizens, but also 492 companies.

"Radončić emphasized the importance of the banking sector preserving its stability, but also of being a constructive factor in helping to reduce and distribute the economic damages already caused by the corona pandemic. Therefore, the SBB president proposed that the moratorium, for those who request it, be at least six months and that the interest rate be one percent. Simply put, Radončić believes that business entities and citizens are unable to pay the existing significantly higher interest rates, and this would lead to major social problems and tensions. At the end of the meeting, it was agreed that the Banking Agency of the Federation of Bosnia and Herzegovina, in accordance with its legal powers and procedures, will consider this proposal," the SBB statement reads.