Central bank announces pricier loans
The National Bank of Serbia (NBS) was forced to introduce restrictive measures, Governor Radovan Jelašić says.
Monday, 21.01.2008.
18:09
The National Bank of Serbia (NBS) was forced to introduce restrictive measures, Governor Radovan Jelasic says. Jelasic said Monday in Belgrade that the move to restrict conditions for taking out loans came in order to achieve the stability of prices. Central bank announces pricier loans The NBS was forced to increase restriction levels so as to allay inflation pressures, which in turn will be translated in more expensive loans, he explained for the state television, RTS. As for the decision to fix the key policy rate at 10 percent, Jelasic said "this will apply only to some loans." Jelasic added that when it comes to some consumer loans there is "much room" for cutting interest rates, but that this would not apply to housing loans. Pointing out that politics had a "certain effect" when it comes to the exchange rate of the dinar, Jelasic said that the central bank has significant foreign currency reserves, now at some USD 14 bn, and that, "for this reason it was possible to maintain a stable exchange rate." The NBS governor added that supply and demand had stabilized and that now the exchange rate was at RSD 81 for one euro. Radovan Jelasic (FoNet)
Central bank announces pricier loans
The NBS was forced to increase restriction levels so as to allay inflation pressures, which in turn will be translated in more expensive loans, he explained for the state television, RTS.As for the decision to fix the key policy rate at 10 percent, Jelašić said "this will apply only to some loans."
Jelašić added that when it comes to some consumer loans there is "much room" for cutting interest rates, but that this would not apply to housing loans.
Pointing out that politics had a "certain effect" when it comes to the exchange rate of the dinar, Jelašić said that the central bank has significant foreign currency reserves, now at some USD 14 bn, and that, "for this reason it was possible to maintain a stable exchange rate."
The NBS governor added that supply and demand had stabilized and that now the exchange rate was at RSD 81 for one euro.
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