Bosnias interest rates on corporate loans continue to fall in November 2012.

By bne IntelliNews January 14, 2013
The average interest rates on long- and short-term corporate loans in Bosnian marka fell in November 2012, central bank data showed. Rates on short-term loans for businesses, which have been declining in annual terms since October 2010, dropped 0.61pps to 6.65% in Nov, while interest rate on long-term corporate loans fell 1.09pps to 7%, declining for a second consecutive month. In the household segment, the interest rate on short-term loans in local currency went up 0.47pps y/y to 10.38% and the rate on long-term ones dropped 0.71pps to 7.88% in November. Loans in Bosnian marka represented close to 95.8% of total loan stock and increased by 4.9% on the year at end-November. Since end-2011, the loans dynamics in Bosnia has been mainly driven by household lending, while loans to private and public companies posted sluggish growth over the period, reflecting the deteriorating business environment.

Bosnias interest rates on corporate loans continue to fall in November 2012.

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