Bosnia preparing laws to tackle rising bad loans- central bank

SARAJEVO, July 23 Wed Jul 23, 2014 9:39am EDT

SARAJEVO, July 23 (Reuters) - Bosnia is working on legislation to tackle the growing problem of non-performing loans, either through their sale or the creation of a so-called "bad bank" to ring-fence the toxic debt, central bank governor Kemal Kozaric said on Wednesday.

Kozaric told Reuters the finance ministry was working with banking agencies in Bosnia's two autonomous regions on laws "allowing the sale of bad debt or the creation of a bank for bad loans."

"We are looking to October to have these laws in place," he said on the sidelines of a banking conference in the capital, Sarajevo. (Reporting by Daria Sito-Sucic; Editing by Matt Robinson)