Due to the influence of external factors, the increase in the price of loans related to the euro in Serbia is obvious, the only question is how much the installments will rise by the end of the year
The European Central Bank could raise interest rates again today, which would affect the cost of borrowing in Serbia
After annual inflation in the eurozone reached 3,2 percent, the highest level since September 2023, the European Central Bank decided to raise key interest rates
In an attempt to boost the faltering economy of the Eurozone, the European Central Bank on Thursday cut the benchmark interest rate by 25 basis points. Inflation, which has been a key threat for years, is now falling below the target level for the first time, while trade tensions and announcements of US tariffs further complicate the economic recovery.
Eurozone inflation is rising again, slowly but steadily. The European Central Bank is speculating about the causes and is likely to cut interest rates again. Critics say it's a mistake
The National Bank of Serbia reduced the reference interest rate to 5,75 percent, while the European Central Bank lowered it to 3,5 percent, so cheaper loans can be expected
Investors from Serbia "caught the eye" of the competent authorities because they late informed the stock exchange about relevant business information about co-ownership in Adik. That's why the European Central Bank got involved in the takeover of the Austrian Adiko-banka
Money will be expensive in the coming period for both the state and the population. The state needs several billion euros by the end of the year to return due obligations and cover the budget deficit, as well as to help EPS and Srbijagas. Only for existing debts, the state will have to allocate over 300 million euros more than last year based on the increase in interest on already taken loans. The situation will not be any better next year either, because we have to service at least four billion old debts, and at the same time we need to pay for the import of electricity and gas during the heating season.
Individuals who have taken out long-term housing loans in the past few years will fare the worst, as their installments will jump by 4 to 50 percent compared to the spring of this year with the Euribor rate of 70 percent.
"For Serbia, it is not only the unfavorable increase in the price of energy products, but also that Germany, Italy and Austria, our main export markets, but also the countries from which we receive a good part of foreign investments, will be quite affected by the development of events, so that this is reflected in our economy and through the trade and through the investment channel. We will suffer inflationary pressures like everyone else, but in order to defend against higher prices on the international market, it would be good for Serbia to try to maintain all the trade relations it can in these conditions."
