The European Central Bank (ECB) has decreased three major interest rates by 0.25%. This means that citizens will be able to borrow money at a lower interest rate, whereas the industry will be able to count on more favourable investment loans. The Central Bank of Montenegro says that this decision will reduce variable interest rates on long-term loans – primarily the housing loans.
Citizens of Montenegro who have contracted variable interest rates on long-term loans, which depend on EURIBOR, i.e. the price of money on the European market, will benefit from this ECB’s decision, the Central Bank of Montenegro also says, as reported by the public TV station, TVCG.
On the initiative of the governor of the Central Bank, certain commercial banks have already decreased the interest rates, particularly for housing loans.
The analyst, Oleg Filipovic, expects additional decrease in the interest rates on both the European and home market.
“In my opinion, the Central Bank should simply copy the mentioned decision of the ECB and give a binding instruction to all business commercial banks in Montenegro to follow that trend and to reduce interest rates,” Mr Filipovic notes.
In a statement for TVCG, banker Blaz Brodnjak says he expects another two or three decreases in interest rates throughout the year.
“Of course, in the next year as well, but it all depends on the inflation level.”
