Employers call on banks not to increase interest rates for companies

(Patria) - The Employers' Association of the Federation of Bosnia and Herzegovina has been informed in recent days by a number of its members that the commercial banks they cooperate with have announced an increase in interest rates in the coming period.

The Employers' Association of the FBiH believes that, if this information is accurate, and even if this option is stated in the contracts that banks have with business entities, an increase in interest rates is completely inappropriate.

“The announcement of an increase in interest rates on existing loans to companies is unacceptable and unfair. In conditions when the entire world economy, and thus the Bosnian and Herzegovinian economy, is suffering the devastating consequences of the crisis caused by the coronavirus pandemic, the attempt by some banks to preserve already high banking profits by increasing interest rates, completely disregarding the interests of clients, is unacceptable,” the Employers' Association of the FBiH points out.

The UPFBiH emphasizes once again that in times of crisis, everyone must bear their share of the burden in order to overcome the crisis as painlessly as possible, including banks.

“We expect banks in the coming period to show a little more social responsibility in terms of preserving jobs and economic entities that are their most significant clients. We also expect that the general social interest will be at the forefront of banks' operations, not concern for their own profit,” the UPFBiH emphasizes.

The UPFBiH will monitor the situation with the announced increase in interest rates, and if it occurs, the intervention of competent institutions will be requested, and the public will be informed about it.