The bank said in a statement that it intends to identify and propose regulations by March 2016, following which it would assess which provisions are required to be adopted immediately or in phases, reported Reuters.
Currently, non-performing loans are said to account for around 23% of the total lending in Serbia.
Recently, an official from the International Monetary Fund (IMF) had said that the country needs to solve its non-performing loans faster as budget limitations were blocking the transfer of distressed debt into a bad bank.
The official further added that it was important to clear the credit backlog to give a push to job creation, reported Bloomberg.
So far, four banks in the country have collapsed due to the pressure of bad loans at a cost of €800m.
The 10-point plan by the central bank says that it would work on enhancing accounting procedures in line with international standards and will also upgrade the system by which banks report on collateral, interest rates and exposure to their biggest debtors. The bank plans to achieve all its goals by the end of the year, reported Reuters.
