Interest rates on all credits in Serbia to go up by 2-2.5%

"The interest rates on all credits approved to economy and citizens will be increased by 2-2.5% due to the latest measure of the National Bank of Serbia (NBS), which regulates the rise of the mandatory reserves of banks for the debts made abroad from 40% to 60%. The increase in interest rates will also have impact on already approved loans", the Administrative Board of the Association of Banks of Serbia stated.

- Some banks have already decided to raise the interest rates, like HVB bank and Raiffeisen bank, whereas the others still wait to see when and how much will the level of interest rates go up. There are some banks that will first try to take as big part of the market as possible for themselves by keeping the old interest rates - said Budimir Kostić, chairman of the Administrative Board of the Association of Banks of Serbia.

According to his words, the new measure of NBS will, first of all, hit banks and then the population. The results will also be felt in the economy, which will not be competitive due to lack of credits.