Macedonian Banks End-Aug Credit Portfolio Rises 1.4% M/M, Up 39.9% Y/Y

Loans to households totalled 62.47 billion denars at the end of August, up 2.3% from the end of July and 49.5% higher on the year. Credits to companies rose by 34.2% on the year and by 0.8% on the month to 93.23 billion denars.

In August, the credit growth eased to 1.4% on a month, compared with a 3.2% rise a month earlier. By the end of the third quarter, the annual credit growth is expected to stand at 34.5%, NBRM said in its monthly report.

As of July, NBRM imposed a requirement for the commercial banks to keep mandatory reserves in an attempt to curb sharp credit growth. The banks were required each month to allocate mandatory deposits with the central bank, in case the credit growth exceeds 40% at the end of the year.

The Macedonian banks' deposit portfolio, which includes time and savings deposits in foreign and domestic currency, rose by 22.3% on the year and by 2.1% on the month to a total of 148.05 billion denars at the end of August.

Population’s deposits amounted to 96.97 billion denars, up 1.8% on the month and 19.6% higher on the year. Deposits of companies rose 2.8% on the month and 25.9% on the year to 47.34 billion denars.

A total of 18 commercial banks operate in Macedonia, a country of about two million people.

(1 euro = 62.5407 Macedonian denars)