The Central Bank of Montenegro (CBM) doesn’t plan to take measures to protect citizens repaying home loans with variable interest rates. This may be concluded from their answers to the RTCG portal, where they state that they acted in a timely manner in partnership with banks, which resulted in stability in the segment of home loans, which, as they say, at the moment don’t represent a threat to financial stability and require no further measures.
According to data of the Central Bank of Montenegro, in late August, citizens owed €579 million for home loans. In addition, as their analysis carried out from 30 June 2022 to 31 August 2023 suggests, when it comes to the structure of home loans, there’s come to a significant decline in loans with variable interest rates – from 35.08% to 9.9%.
The CBM notes that it’s a result of their recommendation to banks from September 2022, when they advised banks to prepare programs for the protection of their clients, including the information about all the risks that this type of product includes, i.e. if a client wants to pass from a variable to the fixed interest rate, banks should enable it under favourable conditions.
