Milanović: I guarantee that euro loan installments will not increase

Croatian Prime Minister Zoran Milanović on Saturday in Sinj dismissed the possibility of interest rate increases on loans taken out in euros, and also said he believes there will be no further cost increases after the most recent ones, two days ago, on cigarettes and gasoline, reports the Patria News Agency.

When asked by journalists whether interest rates on euro loans would increase, Prime Minister Milanović said:

-No, that will not happen, I guarantee that it will not happen. They will not increase, and I am telling citizens with full responsibility.

Milanović emphasized that the problem is that Croatian citizens are heavily indebted privately.

-Private debt is a bigger economic and financial problem for us than public debt. Public debt is a serious matter and must be constantly controlled. I think we have reached a ceiling there, but private debt hinders people's consumption, it simply stands still. And that is why there is no chance that the situation, as far as loans are concerned, will be worse than this, Milanović assessed, adding: And if it weren't for us, if it weren't for my Government, if you want, if it weren't for me, the installments in 'Swiss francs' would be even higher now.