Soskic warns: Price increase of euribor-indexed loans is certain
Former NBS Governor Dejan Soskic has said interest rates will increase in the upcoming period, causing the price of euribor-indexed loans to rise.
“This depends on a type of loan. If a loan is contracted with a flexible interest rate based on a benchmark interest rate, (euribor), then the existing loans, which are already being repaid, will have an upward adjustment, i.e. – there will be an increase in price. If it was taken with a fixed interest rate, then this will not happen,“ Soskic told N1 TV.
He believes that in order to avoid a crisis, Serbia should keep all open trading lines with the largest number of countries in the world.
Prices are rising, the consequences also affect an increase in loan prices
„In these circumstances, when prices are rising in many domains, countries that trade with a larger number of countries will be able to find alternative supply lines and all the products that are not available on the market in sufficient quantities,“ said the former NBS governor.
As a reminder, Serbia’s economic growth will be dampened this year by the economic consequences of the Russian aggression against Ukraine and it will reach 3.4 percent, according to the economic forecasts of the European Commission.
This is a situation that affects the entire global economy, especially Europe. We know that the effects will be negative for all the countries that are our significant trading partners.