The editor-in-chief of Biznis and Ekonometra, Radojka Nikolic, says for RTS that very low interest rates on loans will remain for another two to three years. He tells those who have borrowed in the long run that they can expect an increase in interest rates.
Radojka Nikolic estimates that since the vast majority of citizens who took loans in banks in two rounds agreed to a moratorium on the payment of loans, it shows that they needed a break and additional money at their disposal.
Nikolic points out that interest rates on loans have never been lower (especially when it comes to Euribor, which is negative), and that, as experts estimate, will remain for another two to three years.
After that, as he says, in addition to the growth of the interest rate on loans, an increase in inflation is also expected.
“If you are borrowing in the long run, it counts on an increase in interest rates, in case it is short-term look to repay the loan while interest rates are low. It is a cyclical process. At one point the interest rate is low and then there is an increase and increase in debt,” Nikolic points out.
On the other hand, Nikolic points out that the company expects to pay taxes on contributions received from the state next year.
In that context, the editor-in-chief of Biznis and Ekonometar magazine reminds of the statement of the IMF chief Kristalina Georgijeva, who warned that the rise of the world economy will be long with many obstacles and that if state aid is stopped, many companies will go bankrupt.
“She said that companies must ‘reset’ their business – switch to digitalization as soon as possible, consider whether what they produce is on the market,” Nikolic added.
Nikolic also expects the growth of the public debt of the states, since 11,000 billion dollars have been printed on the global level so far due to the pandemic crisis and covering the losses, RTS reports.
