Photo: PixabayEuribor - the interest rate at which a group of European banks lend money to each other - is "in the black" for the first time since November 2015. The value of the six-month Euribor is now 0.009%. For debtors in Serbia, whose loans are tied to the euro, this information is important because Euribor is an integral part of the interest rate at which they also repay their debt.
The variable interest rate at which loans are repaid in Serbia, the repayment of which is tied to the euro, consists of two parts: one is the six-month (6M) Euribor and its value is variable, and the other is a fixed part - the so-called percentage margin.
The Association of Banking Clients Efektiva also pointed out the increase in Euribor.
“At the beginning of the year, the value of 6M Euribor was -0.55, two months ago it was - 0.36, and now its value is 0.009“, stated Efektiva.
The last time, let us remind you, the positive value of 6M Euribor was on November 9, 2015, when it was 0.001%.
In Effective, they point out that when the value of Euribor is "converted" into loan installments, if, for example, the bank's margin is 3.5% and the initial interest rate when approving a loan is 2.95%, with the latest calculation it looks like this:
“On the example of a loan of 50,000 euros for 20 years, the installment was 276 euros at the beginning of the year, and now it is 290 euros, which is an increase of 14 euros. If Euribor is soon 1%, the installment will be 316 euros, which is an increase of 40 euros, and if it increases to 2%, the installment would be 344 euros, which is an increase of 68 euros, compared to the beginning of the year“, indicate in Effective .
On the example of a loan of 80,000 euros for 25 years, the installment, according to Efektiva's calculations, was 377 euros at the beginning of the year, and now it is 400 euros, which is an increase of 23 euros, reports the N1 portal.
“If Euribor is 1%, the installment will be 445 euros, which is an increase of 68 euros, and if it increases to two percent, the installment would be 491 euros, which is an increase of 114 euros, compared to the beginning of the year“, said Efektiva .
In this association, they remind that the value of Euribor during 2008 was more than 4.5%.
“If those values returned by any chance, the users of housing loans would experience a flood, because their loan installments would increase drastically! On top of all this, banks are increasing the prices of fees, such as account maintenance, e-banking transactions, etc., which for loan users, along with the growth of Euribor, is a double blow to the household budget“, says Efektiva.
The movement of Euribor
According to Euribor-rates.eu, 6M Euribor returned "plus" on June 6.
It is noticeable that the highest values of this interest rate were reached during 2008.
Specifically, on October 9, 2008, the value of 6M Euribor was 5.448%.
The lowest value, 6M Euribor had on December 20, 2021, when it was -0.554%
Source: rs.n1info.com
