16:27 - 15.05.2023

---

May 15, Fineko/abc.az. Luis de Guindos, vice president of the European Central Bank, stated that monetary policy has reached the last level of tightening.

ABC.AZ reports that in an interview with Italian newspaper Il Sole 24 Ore, he said that the combination of slowdown in the economy and rising interest rates will increase the costs of banks to finance problem loans.

"An increase in interest rates may make it harder for some borrowers to pay their bills. Currently, the improved profit margin compensates for potential losses from non-performing loans. However, as the economy slows, the combination of interest rates increases. This brings financial costs to banks and an increase in bad loans," Luis de Guindos said.