With the new year 2009, Zagreb Bank is raising interest rates on loans – specifically for housing, cash, and car purchase loans. The most significant increase will be for housing loans in kuna – the interest rate will rise from 6.3 percent to as much as 8 percent.
Housing loans in euros will increase from 7 to 7.5 percent, while the previously cheapest loans in ‘švicarcima’ will become more expensive by 0.5 percentage points; specifically, interest rates for youth loans will rise from 5.8 to 6.3 percent, while those in the standard offer will increase from 6.3 to 6.8 percent. The bank states that it will allow clients to change the currency of loans approved in kuna and those linked to CHF to loans linked to euros without any fees, for all applications received by March 31, 2009. Interest rates for standard cash loans in kuna or euros will range from 10 to 10.2 percent starting January 1. Car purchase loans linked to the franc will increase from 6.55 to 6.95 percent, while kuna loans will become more expensive by as much as 1.75 percentage points – jumping from 6.6 to 8.25 percent.
Interest rates remain unchanged only for loans to pensioners and students. The new interest rates will affect the amount of monthly obligations due in February, and clients will receive notifications at their home addresses. The bank explains the rise in loan interest rates by the increase in interest rates in the interbank market, where banks lend to each other, and the rise in interest rates in the international market, where the cost of financing for all debtors, including banks, has increased by at least 1.75 percent. If this is the main reason for the increase in loan interest rates (interest rates on savings are capped at a maximum of 6 percent and are mostly promotional), similar ‘congratulations’ could be sent to their clients by other banks as well (G.G.)
