Vice Prime Minister and Minister of Finance, Zoran Stavreski, expects for domestic banks to reduce interest rates in 2011.Bankers point out that there will be reduction, however no drastic one, of interest rates.
 
– I expect for interest rates to significantly decline in 2011, which will, of course, be gradual. Such reduction is expected as a result of the created conditions as regards stabilization of macroeconomic trends, as well as the expectations of the banks and the economic entities and the coordination between monetary and fiscal policies, and above all, control over the risk and the banks will accordingly assess the project quality. However, all in all, interest rates will be reduced and I encourage the bankers to do the same, Minister Stavreski said, after signing the Agreement for Construction of Multi-Storey Car Parks in the central area of the capital city.
 
Komercijalna Banka CEO, Hari Kostov, pointed out they will announce the interest rates the day after tomorrow, to be applied from 1 January, adding that their calculations show no drastic drop as regards credits. However, there will be significant reduction of interest on credit balance. – In the course of 2011 it can be expected for interest rates to more significantly decline if NBRM adjusts the reserve requirement once more. At the moment, Komercijalna Banka sets aside more than EUR 1 million with 1% annual interest rate, Kostov said, adding that such measure was introduced and appropriate for the period of crisis, however the conditions are not the same.
 
Reduction of interest rates on deposits, as Hari Kostov said, is not expected to lead to slowdown of growth of deposits evident in the pervious years, since, as he emphasized, each individual is to decide where to deposit his funds and receive yield.
 
To that end, as Stavreski said, the state undertakes measures to enhance saving, such as increased amount of insured deposits to EUR 30,000 and postponing the tax on interest of saving deposits for two years – to begin in 2013, as well as creation of general conditions for economy enhancement and conducting sound fiscal policy.
 
– Both the level of budget deficit and the other measures we undertake contribute to stabilization of the Macedonian economy, the rest is just business policy of the banks and this is where we expect for competition to come to the fore, Minister Stavreski said. (MIA)
