Interest on Dinar loans not to drop below 13% - There will be no cheaper loans denominated in dinars

Dinar loans won't cost below 13 percent a year because that is the state's interest on treasury notes, the daily Blic writes.
Loans denominated in dinars can be taken out with an annual interest rate of 17.5 to 22 percent. A two-year loan of RSD 230,000 costs about RSD 300,000 on average with a monthly installment of RSD 12,500. This price is dictated by the Serbian government through borrowings and t-note sales.

Zoran Grubisic, a professor at the Belgrade Banking Academy, claims we should not expect interest rates to drop below those at which banks buy t-notes from the state.

- The Public Debt Administration was selling notes at an annual interest rate of 13 percent in March. This means that banks won't offer people and businesses lower interests for any type of loan. They will definitely be higher - says Grubisic.

Since the start of the year, the Finance Ministry has sold EUR 800 million in treasury notes and secured a profit of about EUR 50 million for banks that reduced lending. Over the past six months, bank have decreased their lending by 168 million dinars.

Narodna banka Srbije Beograd

Vlada Republike Srbije

BBA - Beogradska Bankarska Akademija

Ministarstvo finansija Republike Srbije

Uprava za javni dug

AIK Banka a.d. Beograd

Halkbank AD Beograd

NBS

Dinar loans

loans in RSD

treasury notes

t notes

Zoran Grubisic

Vladimir Cupic

Aleksandar Calovic

securities