Credits in northern Macedonia are becoming increasingly expensive, while citizens and companies face higher interest rates during the receive of new loans.

The largest expansion is noted in the business sector, where the average interest in September reached over 5 percent. By contrast, interest rates for new deposits mark discounts.

According to People’s Bank data, the average interest rate for new loans in September reached 4,94 percent, with an increase of 0.24 percentage points compared to August. In companies, this rate rose to 5.05 percent, while families reached 4.77 percent.

As for families, new loans in September have been approved at the average interest rate of 4.77 percent, against 4.73 percent in August. While growth is more moderate, data shows that citizens also face higher interests during obtaining new loans.

Meanwhile, the already approved loans to the movement are much smaller. The average interest rate for all loans remained at 4.68 per cent, while the gap between borrowing costs and savings gains continues to be pronounced.

The average interest rate for new deposits received in September has dropped to 2.70 per cent, respectively, by 0.02 percentage points compared to August. At household deposits it was 2,69 percent, while in companies 2,73 percent.

The gap between the average interest rate for new loans and new deposits amounts to 2.24 percentage points. This means that citizens and companies pay significantly more for the new loans than they earn from deposits placed in banks. Meanwhile, in September alone, citizens’ loans have reached about 4.93 billion euros, while deposits have been higher for more than two billion euros.