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Serbia Abolishes Reserve Requirement for Leasing Companies

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Sept. 10 (Bloomberg) -- Serbia’s central bank lifted mandatory reserve requirements for leasing companies to help them cut costs and improve their ability to compete.

Freeing leasing firms from allocating to reserves 10 percent of the funding they borrow abroad will allow financial leasing to become “a more attractive product” the Belgrade-based Narodna Banka Srbije said in an e-mailed statement.

Thirteen of Serbia’s 16 active leasing companies had a combined pretax profit of 467.2 million dinars ($51.34 million) in the first six months, while three had a cumulative loss of almost 567 million dinars, according to the central bank that regulates and supervises financial services.

Hypo Alpe-Adria Leasing d.o.o Beograd is Serbia’s biggest leasing company with almost 25 percent of the market.

To contact the reporter on this story: Misha Savic in Belgrade at

To contact the editor responsible for this story: James M. Gomez at

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