EURIBOR at the highest level since 2011.

The value of EURIBOR, the reference interest rate on the interbank market, which is additionally calculated for loans with a variable interest rate, yesterday reached the amount of 1,85 percent, which is the highest value since July 2011.

EURIBOR had a negative value from October 2015 until the beginning of June this year, when its rapid growth began.

In the period of these seven years, clients who took loans with variable interest paid smaller installments because EURIBOR was calculated as zero for them, than those who took loans with fixed interest rate, but now the situation has changed.

Due to this growth of EURIBOR, installments for loans with variable interest may increase by 15 to 20 percent.

The European Central Bank, as well as many others around the world, have been increasing reference interest rates in recent months in order to curb inflation, but this also affected the growth of EURIBOR.

The highest value of EURIBOR was in October 2008, when it was 5,43 percent due to the previous growth in lending due to the so-called economic boom. After that, problems begin in the banking sector in the USA and the EU, then in the whole world, which caused the great economic crisis of 2009. Already in October 2009, the value of EURIBOR fell to one percent.

At the beginning of this month, the Central Bank (CBCG) announced that due to the observation of this problem and the possibility of further growth of EURIBOR, they obliged commercial banks to create protection programs for clients who have loans with a variable interest rate by the end of September. Those programs should enable clients to switch to loans with a fixed interest rate or some combined model.

The Central Bank of Serbia stated that banks are required by law to provide consumers with written information on the main characteristics of the loan product, the total cost of the loan, as well as other important legal aspects relevant to the consumer before concluding the contract.

"Through these programs, loan users will be warned in a clear and unambiguous way about all the risks arising from interest rate fluctuations. Before concluding a loan agreement with a variable interest rate, banks will inform clients of the consequences of a possible further increase in EURIBOR, so they will have the opportunity to assess whether the proposed loan agreement is adapted to their needs and financial situation", it was stated at the time from CBCG.

According to the data of the credit register of the CBCG, the total approved variable rate loans as of July 31, 7 amount to 2022 million euros and make up 846,1 percent of the total loans.

This means that every fourth approved loan is with a variable interest rate, and that their installment amount will increase along with EURIBOR.

The highest rate of variable loans is for housing loans, where they participate with 62 percent.