Serbian banks recorded a 63% quarterly increase in newly approved dinar corporate loans in the second quarter of 2026, with lending reaching a record €1.15 billion as businesses financed operating expenses and investment.
According to the National Bank of Serbia (NBS) dinarisation report published on October 9, new foreign-currency and euro-indexed corporate loans totalled approximately €2.56 billion, up 46% quarter on quarter.
Total outstanding bank placements to companies and households increased by €1.49 billion, including €681 million in additional corporate exposure and €811 million in household lending.
Working Capital Drives Dinar Borrowing
Working-capital financing accounted for 66% of newly approved dinar corporate loans, equivalent to approximately €762 million. Companies use these facilities to purchase raw materials, finance inventories, pay wages and settle supplier invoices. Higher energy and logistics costs, procurement expenses and delayed customer payments can increase demand for short-term financing, particularly among manufacturers and exporters that must cover production costs before receiving payment.
However, rising working-capital borrowing does not necessarily signal financial distress. Banks must assess whether additional credit supports expanding production or compensates for weaker cash flow, taking into account receivables, inventory turnover and overdue supplier payments.
Investment Lending Also Increases
Corporate credit growth extended beyond operating liquidity. The NBS reported that investment lending more than doubled compared with the preceding quarter, while financing for working capital and import-export operations also increased. Companies continued seeking loans for production equipment, industrial facilities and capacity expansion. While investment financing can support future revenue generation, working-capital loans primarily cover immediate business requirements.
The NBS figures also include qualifying renegotiations of existing credit agreements, meaning newly approved lending does not represent an equivalent increase in outstanding debt.
Dinar Financing Remains More Expensive
The average interest rate on newly approved dinar corporate loans reached 7.1%, compared with 5.1% for foreign-currency and euro-indexed loans. The lower nominal cost of euro-linked borrowing may attract companies with euro-denominated revenues, particularly exporters. Businesses earning primarily in dinars, however, remain exposed to exchange-rate movements when their liabilities are indexed to the euro.
The dinar share of outstanding corporate placements rose to 24.2%, from 22.8% at the end of March. Dinar loans accounted for 31% of newly approved corporate lending, the highest share since the third quarter of 2020, although foreign-currency-linked financing continued to dominate the market.
Inflation Adds Pressure on Corporate Borrowers
Serbia’s annual consumer price inflation reached 4.1% in September 2026, while the NBS maintained its benchmark interest rate at 5.75% in October. Higher financing costs can squeeze profit margins, particularly for companies with substantial inventories, lengthy customer payment periods and limited pricing flexibility. Banks must therefore examine cash flow, supplier concentration, inventory valuation and expected customer payments, alongside conventional credit indicators.
Export-oriented manufacturers, including automotive suppliers, electrical equipment producers, machinery manufacturers and metals processors, often require financing before international customers settle invoices. Domestic manufacturers also face currency risks when imported inputs are priced in euros but finished goods are sold in dinars. The expansion in lending creates opportunities for factoring, receivables financing, inventory-backed loans and supply-chain finance, allowing companies to align credit with commercial transactions and payment cycles.
