New loans become more expensive in North Macedonia

Taking out new loans in North Macedonia is becoming more expensive, as interest rates have risen for both businesses and citizens.

The sharpest increase was recorded in loans to companies, where the average interest rate exceeded 5 percent in September. Meanwhile, new deposits were offered at lower interest rates.

Data from the National Bank show that the average rate on new loans rose to 4.94 percent in September, up 0.24 percentage points from August. The rate reached 5.05 percent for companies, while it stood at 4.77 percent for households.

For households, the average interest rate on new loans was 4.77 percent, compared with 4.73 percent a month earlier. Although the increase was more modest, the figures show that citizens, too, are facing higher borrowing costs.

There were minimal changes in loans approved earlier. The average rate on all loans remained at 4.68 percent, while the gap between the interest paid on loans and the returns on savings remains substantial.

In September, the average interest rate on new deposits fell to 2.70 percent, a decrease of 0.02 percentage points from August. Household deposits were recorded at a rate of 2.69 percent, while the rate for company deposits was 2.73 percent.

The difference between the average interest rate on new loans and that on new deposits is 2.24 percentage points. This means citizens and businesses pay much more for loans than they earn on money deposited in banks. In September alone, citizens’ loans amounted to around 4.93 billion euros, while deposits were more than two billion euros higher.