Montenegro – Central bank considering temporary measures to reduce high interest rates on loans and deposits

On 23 October the Montenegrin newspaper Pobjeda, citing unnamed sources, reported that the Central Bank of Montenegro (Centralna banka Crne Gore – CBCG) is mulling temporary measures to limit the maximum interest rates allowed on loans and deposits in Montenegro.  At present the country, which uses the euro as its currency, has interest rates on deposits ranging as high as 8%, interest rates on credit cards of up to 20%, and loan rates from microfinance organizations of up to 30%.  The restrictive measures would be introduced sometime in the final quarter of 2012, but the duration of the measures is still unclear.  For the full story with additional background, see CBCG će obarati visoke kamate.  For interest rate statistics compiled by the Central Bank of Montenegro, in Montenegrin and English, see Statistika kamatnih stopa (updated 19 October).

Mark Pleas (contact)

Eastern Europe Banking & Deposits Consultant