Zagreb Bank will lower the interest rate on housing loans in Swiss francs for its clients who have regular income deposited into their current account at Zagreb Bank, it was announced today by Zaba.
The interest rate will be reduced by 0.55 percentage points, so the interest rate for young people will be 5.5%, while for standard housing loans it will be 6.0%. The new interest rates will take effect from November 1, 2010, and clients will be notified in writing about specific changes for each loan at the beginning of October. Based on the average housing loan linked to the CHF exchange rate (valued at 70,000 EUR, repayment period of 20 years), the average monthly installment will be lower by about 160 kuna (approximately 2,000 annual savings). Zagreb Bank made this decision to ease the repayment of loans for clients whose monthly installments have significantly increased due to the rise in the Swiss franc exchange rate, which the Bank has no influence over, according to the press release. Otherwise, Zagreb Bank was the last on the Croatian market to introduce loans linked to the Swiss franc. (G. J.)
