The rise in the prices of basic foodstuffs, clothing, shoes, fuel, has obviously forced citizens to Bosnia Herzegovina (BH) to increase further Following ready, be able to ensure their existence.
Citizens, so to meet basic needs, increase loans, as evidenced by statistics kept by the Central Bank of Bosnia and Herzegovina.
Namely, when it comes to total loyears in BiH, they amounted to 20.83 billion BAM end of august oned increased by 14.2 million BAM compared to the previous month. Credit growth has been recorded in the household sector, for 40.5 million BAM, and public enterprises – 3.9 million BAM, while the decrease was recorded in the sector of private companies, government institutions.
The annual loan growth rate in august was 2.4 percent or BA 491.9 millionM. According to data from the Central Bank of BiH, the annual growth of loans was recorded in the household sector of 403.5 millionillion BAM, private companies by 105.9 million BAM, agovernment institutions by 36.8 millionBAM.
Given that not all citizens are creditworthy and often do not respect the banking criteria, it has become common for citizens to borrow from microcredit organizations, at dizzying interest rates.
It sounds amazing, but it it’s true that people borrow 400 BAM, that they have to repay with a top interest rate of 220.5%, and it’s legal. Namely, a microcredit organization registered in Republika Srpska (RS), according to data from RS Banking Agency, offers a loan up to 400 BAM with a reimbursement period of 31 days to three monthss. So, the one who takes 400 BAM for three monthsthis should return a total of 555 BAMr.
Economist Admir Cavalic explained that market trends and new economic conditions lead to a change in consumptionn models, consumption habits and the behavior of the population.
“In this suiteext, these data must be observed. The growth of microcredit for non-use consumption shows that citizens must compensate for the low standard of living in this sector. manner. What is important to mention is that the banking sector is, naturally, more conservative during this period, so it is not surprising that microcredit services have grown – they have emerged and are all organiclinked to periods of crisis, âCavalic underlined.
Growth of microcredit
In the first semester of this year, the number of microcresaid forcitizens increased by 13.7 million BAM and amounted to more than 409.1 million BAM. The most common are loans for other purposess – for retirees, financing of general consumption of citizens, non-profit treasury loans, commodity loans, etc. Their share in total loans is 53%, with a growth of 10%.