Kutle: It is not realistic to expect a change in interest rates in BiH

Kutle: It is not realistic to expect a change in interest rates in BiH

SARAJEVO, October 24 (FENA) – President of the Association of Banks in Bosnia and Herzegovina Berislav Kutle told FENA that debtors of short-term loans with a variable interest rate should not worry about changing that rate.

He believes that it is not realistic to expect a change in interest rates in BiH in the next few years for several reasons.

“The first reason is unrealistically higher supply than demand for loans, which will not change quickly. In such an unstable political situation in BiH, it is not realistic to expect higher demand for loans,” said Kutle.

As another reason, he stated the interest rate on the European market, which even the expected inflation in the short term cannot raise.

“It is clear that it would be wise for everyone who has loans for ten or more years to change the interest rate to a fixed one in order to be sure,” Kutle pointed out.

He added that inflation is expected to rise in the coming period because everyone in the EU is trying to challenge it in order to accelerate growth and development, and another reason is the rise in prices of raw materials and energy that began before the pandemic.

“The pandemic has postponed this crisis for almost two years, but it is now ahead of us,” Kutle emphasized.