Serb Readies Aid Plan for Problem Swiss Franc Loans, Tanjug Says

Serbia’s central bank will present a plan within 10 days to help households in difficulty paying off Swiss franc denominated-loans, Tanjug reported.

The central bank is working closely with banks and consumer associations to develop the plan, the news agency reported.

Total consumer bad debt, defined as payments 90 days or more overdue, was 49.6 billion dinars ($584.7 million) at the end of November. Swiss franc-denominated loans accounted for 7.9 billion dinars, or 16 percent of total problem household borrowing, according to central bank data released today.

Banks in Serbia stopped granting loans linked to the Swiss franc in October 2008. A total of 2,272 clients have run into difficulty making repayments since then because of a surge in the value of the Swiss franc, the central bank said.

To contact the reporter on this story: Gordana Filipovic in Belgrade at gfilipovic@bloomberg.net

To contact the editor responsible for this story: James M. Gomez at jagomez@bloomberg.net

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