Non-Performing Loans in North Macedonia - Lessons Learned?

The object of this paper is to offer a complete and comprehensive study of non-performing loans, in the Republic of North Macedonia, as the most sensitive slice of the loan portfolios. It is expected that this work provides an extensive analysis of the reasons for the emergence of non-performing loans, their early detection, and effective ways to address them. Furthermore, analysis of the impact of non-performing loans, on the entire economy of the Republic of North Macedonia, is conducted. The analysis made with this study concludes that the growth of the total assets of banks have a positive impact on non-performing loans. On the other hand, the dynamics of non-performing loans, does not produce a significant impact on the macroeconomic indicators for the overall economy, in the country, except for, the rate of unemployment, whereby a reduction of the rate, increases the amount of problem loans.