Total loans to domestic sectors at the end of March this year amounted to 26.46 billion BAM and, compared to the same period last year, increased by 10 percent or nominally 2.41 billion BAM, according to data from the Central Bank of Bosnia and Herzegovina (CBBiH).
As stated in this data, compared to the previous month, an increase in loans of 396.6 million BAM or 1.5 percent was recorded.
“Loan growth was registered in the household sector by 176.3 million BAM (1.4%), in private companies by 193.6 million BAM (1.8%), and in government institutions by 39.6 million BAM (3.0%),” the CBBiH stated.
They added that loans decreased on a monthly level in non-financial public enterprises by 12.2 million BAM (1.9%) and in other domestic sectors by 0.8 million BAM (0.3%).
“The annual growth rate of total loans in March 2025 amounted to 10%, nominally 2.41 billion BAM. Annual loan growth was registered in the household sector by 1.17 billion BAM (9.8%), in private companies by 887.1 million BAM (8.8%), in government institutions by 263 million BAM (23.6%), in non-financial public enterprises by 35.9 million BAM (6.0%), and in other domestic sectors by 54.9 million BAM (21.6%),” stated the CBBiH.
Economist Sasa Stevanovic said that credit activity is an indicator of an active economy.
“Private companies and households have more intensive credit activity than the average of the previous ten years. Growth is two to three times more intensive. This should not be a cause for concern. The main reason we can explain this is the more intensive growth of wages and pensions. That is a good indicator because when you have credit growth, then the result is the growth of the money supply in the economy, growth in liquidity, activity, and profitability of participants in economic life,” said Stevanovic.
He added that the state can be satisfied with higher taxes, banks with higher profit, and the population with a larger amount of money at their disposal, which, if used wisely, raises both the current and future standard of living.
“Still, we need to understand that private debts, which are the sum of loans to the population and the economy, have a low share in the economy compared to developed countries, so if economic policy is properly directed, everyone can enjoy the benefits,” Stevanovic emphasized.
Slavisa Rakovic, an economic analyst, pointed out that, according to this data, nothing beyond expectations is happening, and that the first quarter usually requires additional financing for both the economy and the government.
“Deposit growth has also been recorded, so these occurrences are regular,” concluded Rakovic, Nezavisne writes.
