June 14 (SeeNews) - Serbia's central bank governor Jorgovanka Tabakovic said the ratio of non-performing loans (NPL) in Serbia's banking sector declined to a record-low level of 8.8% at the end of April.
"The NPL ratio of 8.8% for April is the lowest level since this type of data has been measured," Tabakovic said in a video file posted on the website of news agency Tanjug on Wednesday.
The ratio of bad loans in Serbia's banking sector declined to 9.2% at the end of March, the central bank said in a quarterly report earlier this week.
"With the reduction of the key repo rate to the lowest level we contributed to the fall of the interest rate on dinar loans, enabling a higher consumption by citizens," Tabakovic said.
The central bank cut the key repo rate by 0.25 percentage points to 3.25% in March and to 3.0% in April to help guide inflation to the target band. In May and June, the central bank kept the key repo rate unchanged.