Lower Interest Rates on Household Loans

13/03/2024

Today’s meeting between the CBCG Governor, Ms Irena Radović, and the management of banks operating in Montenegro resulted in an agreement that some banks will offer lower interest rates on household loans this March, while others will do it next week.

Considering the challenges Montenegrin citizens face and intending to contribute to preserving their standard of living, the CBCG launched, and commercial banks supported, the initiative to lower interest rates on household loans.

“In addition to benefits for citizens, we believe that the offered loans with lower interest rates will encourage the market competition strengthening, opening up space for the bank pricing policy’s additional corrections,” said Governor Radović.

The President of the Association of Montenegrin Banks and the Erste Bank’s Management Board Chairman, Mr Aleksa Lukić, expressed his satisfaction with the CBCG initiative. He pointed out that all banks supported this action, aiming to boost their clients’ trust and confirm their social responsibility. As the Erste Bank management representative, he announced that the bank “will offer a new set of products at extremely favourable interest rates, such as loans for young married couples to solve their housing issue at an interest rate of 3.99%. We will also provide more attractive interest rates for pensioners, even 1.5% lower than the existing ones. Moreover, all citizens will be offered consumer loans secured by a mortgage at an interest rate of 5.99% compared to the current 6.79%,” Lukić said.

The Chairman of the CKB Bank, the largest bank in the Montenegrin market, Mr Tamás Kamarási, said that this bank “will be a partner to support any proposal contributing to the well-being of citizens and the community”. He added, “Already in March, the CKB Bank will offer housing loans to young people aged under 30 with a fixed interest rate of up to 4.49% and keep the longest maturity, the best fixed interest rate and securing conditions for other clients”. Concerning cash loans, CKB Bank will create a special offer for loans with up to 6 years of maturity and prepare some new benefits for pensioners simultaneously.

Mr Martin Leberle, the Chairman of the NLB Bank’s Board of Directors, highlighted that “the meeting’s outcome will be visible next week when the bank will offer lower interest rates on products intended for citizens, which include housing and cash loans.”

At the meeting, the counterparties also discussed current banking sector events, trends and plans for the next period. They concluded that banks are the most stable and orderly part of the Montenegrin economy, characterised by good market regulation, high liquidity and adequate capitalisation.

The Governor also announced that the CBCG is introducing the practice of holding regular meetings with banks, a platform for open discussion on all the banking sector’s challenges. “In this way, we will further improve our relationship and achieve common goals - ensuring long-term financial stability and creating preconditions for more dynamic economic development and improvement of citizens’ living standards,” said Governor Radović.

CBCG meeting with commercial banks, frames

Statement of the CBCG Governor, Ms Irena Radović

Statement of the Chairman of the Management Board of NLB Bank Mr Martin Leberle

Statement of the Chairman of the Management Board of Crnogorska Komercijalna Banka Mr Tamás Kamarási

Statement of the Chairman of the Management Board of Erste Bank Mr Aleksa Lukić

Statement of the President of the Management Board of the Association of Montenegrin Banks Mr Aleksa Lukić