“Balkan nations need to develop a legal framework for dealing with bad loans, speed up judicial reforms and improve bankruptcy and insolvency laws to improve their economic prospects, the International Monetary Fund said in report on Monday.

The report on six western Balkan nations – Albania, Bosnia, Kosovo, Montenegro, Macedonia and Serbia – found their banking systems were plagued by lack of funding, a high level of bad loans and poor bankruptcy procedures. Those drawbacks have slowed the growth of lending at their banks, it said.

‘Sound institutions and a sound judiciary are essentially the source of all business transactions and economy,’ Jorg Decressin, the IMF European Department Deputy Director, said at the report presentation in the Bosnian capital, Sarajevo.” (Daily Mail)