DISCUSSION ON “THE NPL DIRECTIVE (2021/2167) – PRESENTATION OF NOVELTIES, COMMENTS AND ANALYSIS FOR THE LOCAL MARKET”

Yesterday, 26.3.2024, representatives from the Commission for Risks and the Commission for Financial Restructuring of Corporate Debt at the Macedonian Banking Association and EOS Matrix held an expert discussion focusing on the challenges and benefits of the development of a deep and liquid secondary financial market in the country.

The key aspects of the European Directive relating to non-performing placements were presented by Prof. Dr. Katerina Boševska, general director of EOS Matrix in Macedonia and Kosovo, presenting with them valuable conclusions from the Stress Test of the European Central Bank from 2023.

Then, together with the chairmen of the Commission for Risks and the Commission for Financial Restructuring of Corporate Debt at the Macedonian Banking Association, a comparison was made with the local environment and the conditions of the domestic market.

The discussion on how the local situation compares to the results of the ECB Stress Test was driven by the main points:

• Exposures in unsecured consumer and corporate loans are most sensitive to reduced economic activity combined with high interest rates.
• The portfolio of unsecured consumer loans shows higher rates of Non-Performing Exposure (NPE).
• The risks of exposures in commercial real estate (Commercial Real-Estate) have increased in recent years.
• Exposures to variable interest rates show higher risks.

This focused conversation between experts showed that the domestic market has great potential.