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After delaying 6 months, Zagrebačka Bank (ZABA) announced that it will raise interest rates on their existing loan portfolio as of July 1st, adding that they “do not expect” any further changes this year.

The interest rates on housing loans will grow on average by 0.6%, with for other types of loans, such as non-purpose loans, car and consumer loans, the interest rate will grow by 1 percentage point. Troubled by media reports that this will be a huge burden on the family budgets, ZABA calculated that the monthly annuity will grow on average 150 kunas for 20-year housing loans of 70.000 euros. The average non-purpose loans and car loans of 74.000 kunas over 6 years, will increase from 15-80 kunas. Student and pension loans are excluded from these interest rate increases. As high as 93% of housing loan users will be paying monthly annuities up to 300 kunas higher, 4% of them up to 400 kunas and 3 % over 500 kunas or more. These higher annuities will be calculated from August.