prijava
SARAJEVO, June 2 (FENA) - Director of the Association of BiH Banks Berislav Kutle told FENA that the announced increase in interest rates on loans in the EU should not affect changes in our market in the coming period.
He reminded that the European Central Bank (ECB) announced a change in interest rates in the seventh and ninth months of this year, in the amount of 0.5 percent.
"Better said, there would be no negative interest rates on deposits in the EU. This is a small increase compared to inflation approaching double-digit annual levels. I say little because as such it cannot protect the value of money or have a positive effect on reducing inflation, which should be the goal," said Kutle.
He pointed out that in the long run, low/zero interest rates on deposits lead to their transfer from banks to other forms of value, such as real estate, investments, gold and the like.
"This could lead to a reduction in deposits in banks and the need to increase interest rates, so that the banks have sources of financing," Kutle emphasized.
He thinks that it would be wise to protect oneself with a fixed interest rate, considering that the interest rates on loans have never been lower and their reduction cannot be expected.
(FENA) S. R.
