Western Balkans Struggling with NPL

People ♦ Published: November 11, 2013; 20:23 ♦ (Vindobona)

The high percentage of non-performing loans in the Western Balkan region is affecting the financial stability of the region’s countries.

Western Balkans Struggling with NPL / Picture: © Vindobona.org

In the years after the financial crisis, the CESEE region became highly susceptible to external shocks and more dependent on foreign sentiments. In particular, Southeastern Europe did not establish a sustainable growth model in the pre-crisis years. In the boom phase until 2008, the growth model of many CESEE countries was mainly based on consumption, loans and the inflow of foreign…