Experts warn of the effects of raising interest on existing loans

Experts warn of the effects of raising interest on existing loans

“Raising interest rates at high rates is a serious issue and has negative effects,” said Reda Musallam, Partner Manager of Truth, an Economic & Management Consultancy. “The banking system is responsible for pumping liquidity and controlling the rhythm and cash flows of the entire national economy.

He added: Whenever there is stability in the banking system is reflected positively on the national economy, the cost of financing is a critical element in the cost of investment.

He said: This will affect the cost of investment, customers’ ability to repay will be much lower and therefore the commitment will be less. He added: The rise in the interest rate leads to higher prices of services and goods in the domestic market.

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