ECB measures to reduce interest rates for loans in Serbia

BELGRADE - The announced package of measures by the European Central Bank (ECB), which aims to encourage economic growth in the eurozone, will bring about a drop in interest rates for loans in Serbia, more affordable terms for loans the country takes out abroad and it will also exert a positive impact on the exchange rate, Chair of the Raiffeisen Bank Executive Board Zoran Petrovic stated.

Petrovic expects the National Bank of Serbia (NBS) to act as a net buyer of foreign currency on the inter-bank foreign exchange market in 2015 due to the expectations of a higher euro offer, which is why the Serbian dinar should be stable or on a mild drop, which would also be useful for the local economy.

The quarterly and semi-anually euribor total hardly 0 today and a further drop of interest rates in the eurozone is also expected, Petrovic said late on Tuesday and stated that 85 percent of banks in Serbia with a majority stake of foreign capital will be able to reduce their interest rates because the price of euro-denominated capital would drop.

Serbia will also derive benefits from a lower price of euro because it will be able to take out loans on more favourable conditions abroad, Petrovic said.

Photo Tanjug, D. Peternek (illustration)