Estonians who have borrowed from banks will soon have to repay considerably more in interest since euribor rate is expected to grow rapidly in near future, writes Äripäev.
Tõnu Palk, chief economist of Nordea Pank, said that the whole eurozone area has been shocked by such rapid growth in food and energy prices.
“The rapid inflation in March surprised the market and put pressure on the raise of eurozone interest rates,” he said.
European Central Bank is expected to increase three-month Euribor by 0.25% to 1.25% and in the next 12 months to 2%.
Tõnu Toompark, a real estate analyst, says that the time for cheap euro loans is over. “I only hope that there are not too many people who have expected the euribor to remain at 1%,” he said.
Andres Tukk, head of the Swedbank’s private financing unit, said that the euribor continues to grow, but he would not predict exact figures. “I would certainly dare to predict a rise from today’s 1.5 percent [six-month Euribor]; it will surely be higher [by the end of the year] and stable growth will continue,” he said. “But whether it will reach the level of 2.0 or 2.2 percent, I must leave that to the analysts.”
Tukk added that neither Euribor growth nor an expected hike in interest rates by the European Central Bank should significantly influence the local real estate market.
„Our most recent economic forecast shows that three-month Euribor will be 2.7% by the end of this year and 3.2% by the end of 2012,“ said Hardo Pajula, analyst of SEB.
Artiki autor on Toomas Hõbemägi,