The average salary in the EU is 1.520 euros, and in Montenegro about 500 euros. Also, interest rates on housing loans are between four and six percent, while in the EU average is 1.9 percent. The only thing that is more expensive in the EU than in Montenegro is the square meter. For us, the square footage costs between 1,000 and 1,200 euros, while in the EU there is no country has an average price below.
Through the "Thousand Plus" project, which is currently implemented in Montenegro, the interest rate is 2.99 percent, but it is higher than the EU average by 1%. Thus, housing loans represent a much lesser burden on EU citizens than in Montenegro, where a third of a budget has to be allocated for the housing loan installments.
Representatives of banks in Montenegro have been saying for a long time that the interest rate is at the historical minimum, i.e. four percent, however, compared to housing loans in the EU, it is much higher because for the citizens of the richer part of Europe, the interest on housing loans is 1.9 percent. Secretary General of the Banking Association, Bratislav Pejaković, believes that it is difficult to compare our country with the most developed ones or the richer part of Europe from several aspects, because, as he said, they are planetary benchmarks for living standards. The interest rates on housing loans in Montenegro are at the same level in the region, where we really need to look at Croatia as part of the EU, where we are at the same level in that respect, which are comparable parameters and the first steps towards improvement," explained Pejakovic. He stressed that banking operations are the result of each bank's strategy and that it is in line with the goals and available funds for placement and should not be administered if it wants to be in the EU.
"Interest rates are a market category and I am sure that, in accordance with the risk assessment and availability of funds, every bank in Montenegro is responsibly placed in the domain of their potential. Housing loans are specific, long-term loans up to 25 years in our country are, therefore, a very sensitive product of every bank where strict conditions are defined," said Pejakovic.
He argues that the state has set itself responsibly through the Thousand Plus subsidy programs, that it is an approach that can make it easier for banks and loan users to comply with the prospects and expect an adequate correction of interest rates in the future.
"If we recall what the situation was before getting housing loans in 2006, we certainly have to be satisfied with the current situation and the amount of interest rates. It is advisable to look at the reality rather than the intended wishes," concluded Pejakovic.
Text by Dan, on October 15th 2018, read more at CdM
