credit expansion

Serbia policy rate holds at 5.75% as SME credit conditions stay tight

The National Bank of Serbia kept its key policy rate unchanged at 5.75% in June. The deposit facility stood at 4.50%, while the lending facility was set at 7.00%. In its latest reporting, the NBS said lending to corporates and households accelerated to 17.1% year over year in April. Lending growth pointed to stronger activity and demand, while the policy-rate level indicated that borrowing costs remain elevated. For SMEs, the combination of faster credit growth and a higher policy-rate environment…