Loans have never been cheaper - Interest rates down 10% in last 2.5 years

NBS Governor Jorgovanka Tabakovic said Friday (19 February 2016) that interest rates on Dinar loans had dropped about 10pp over the previous two and a half years, adding that the average interest rate was at 8.8% at the moment.

At the presentation of the Inflation Report, Tabakovic noted that the National Bank of Serbia had began lowering the key policy rate in May 2013.

The key policy rate has so far been decreased by 7.5pp and now amounts to 4.25%.

When it comes to rates on Euro loans, Tabakovic stressed that average rates had dropped 2.8pp, to about 4.4%.

According to her, interest rates on Euro loans were mainly affected by the European Central Bank's policy, while the NBS and the Government's fiscal policy contributed to a decrease in the rates on Dinar loans.

- We expect positive tendencies in the credit market to continue in 2016, and we will maintain monetary and financial stability and thus, give a full contribution to sustainable economic recovery and prosperity of our country - said Tabakovic.

Narodna banka Srbije Beograd

NBS

Jorgovanka Tabakovic

rates on Dinar loans

Dinar loans

loan

loans

key policy rate

Euro loans

deficit

rates on Euro loans