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Interest rates won’t change

Bratislav Pejaković (Foto: Portal Analitika)

In the next two to three years, we do not expect a change in interest rates on loans and deposits in Montenegro, a Secretary General of the Association of Banks, Bratislav Pejakovic, told Pobjeda, a daily. He explained these estimations relied on the latest projections by the European Central Bank, as well as on the economic trends pointing out to a recession in some important EU countries.

“The interest rate in placements depends largely on their risks. Banks are joint stock companies where management is responsible to the owners for profitability and meeting the market business principles. The strategy of each bank determines interest rates in placements and the manner of generating funds for them, so we cannot administratively manage the processes where the market penalizes or rewards the business settings, “explained Pejaković, commenting on the constant complaints for high interest rates on loans and the low ones on deposits.

“While comparing with others, we should focus on the region and systematically expressed interest rates. In this context, I think Montenegro’s holding a good position,” Mr Pejaković said.

Commenting on the housing interest rates, he told Montenegrin banks offered housing loans with fixed interest rate and loans without bank’s participation.

“In developed countries, it’s a rare circumstance and costs of that risk are pretty high,” Mr Pejaković warned.

 

 

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