Three out of five banks increased their loan interest rates in the last two months. It is generally believed that the interest rates for the new loan users will continue to slowly increase this year up to an average of 1%.

While two to three years ago the interest rates for car loans were between 7-8 %, now they are no lower than 11,5% and even 13% at some banks. Other cash loans went over the 10% interest rate, while home mortgage rates are between 7%-8 %, which is also an increase of 2% compared to 2007. The problem is that present home owners are also affected by the changes in the interest rates, as 90% of the loans have variable interest rate. Raiffesienbank clients have recently been receiving letters informing them of another increase of 1%-1,5% in their interest rates automobile and cash loans. Those holding a loan tied to the Swiss Franc have been especially hit by the increase. Their loans have gone up by 30% in the last two years, due to the fluctuations in the interest and exchange rates.
(AmCham)