Be aware and avoid any financial problems with the knowledge of these 11 countries with highest bank interest rates. The interest rate is one of the main ways banks earn money. Whether you are taking a loan, getting a credit card, or even paying fees to the bank, the interest rate heavily affects how much you are paying. With this you may get surprised at how much you’ll need to pay back if you ever want to take a loan for a house or car. An institution that handles money knows very well how to handle and take advantage of it. Creditors may also see this as a satisfactory avenue for investment due to the high return.
With that said there are just some countries that have banks that charge higher compared to others. This may be due to laws or policies or even trends and changes in the economy. There are numerous reasons why the interest rates of these banks soar high. Regardless, the large flow of money in a country is a good indicator of how well the country is doing. You may find that the richer countries have lower interest rates and you won’t find those listed in the 10 Richest Countries in the World by 2015 GDP here.
Let’s find out more about these 11 countries with highest bank interest rates:
11. Uganda
Interest Rate: 16%
One of the reasons banks increase interest rates is to cope up with inflation rates in the country. This may be due to how badly their currency has been in recent months. A high amount of government spending may also increase this rate, so banks usually tend to tighten policies with these types of increases.
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10. Moldova
Interest Rate: 17.5%
The increase in interest rate in Moldova has also been a reaction to the poor performance of their currency this year. Their currency (leu) has lost about 25% of its original value opposed to the dollar. Bank owners believe that the increase in interest rates will help their currency exchange rate.
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9. Argentina
Interest Rate: 17.9%
The economy has been sliding for Argentina, and they’ve admitted losing their grip on their money reserves slowly. The high-interest rate is a move that hopes to attract investors so that they’ll have money flowing in again. This is a move that happened after the peso devalued by around 15%.
8. Venezuela
Interest Rate: 19.68%
Venezuela like other countries in this list has been increasing interest rates in order to control and curb inflation rates. There have been problems though with some banks putting up higher interest rates causing the government to impose strict sanctions on banks.
7. Haiti
Interest Rate: 20%
Haiti has been on a slow recovery, and many of the locals are still having problems and rely on loans in order to make ends meet. The loans may be taxing for locals, but it is one of the ways that Haiti can get back up on its feet as the high rate attracts foreign investors as well.
6. Iran
Interest Rate: 21%
Unlike the other countries in this list, Iran has actually been decreasing interest rates in the hopes to improve the economy. According to experts, the decrease of the interest rate may make loaning a lot more affordable and will help propel their economy and monetary flow.
The highest rates in the world can be found in the continuation of this list of 11 countries with highest bank interest rates.
5. Ghana
Interest Rate: 22%
Ghana has been continuously increasing their interest rates in reaction to a failing currency. Ghana has been one of the African countries that have been experiencing a large deficiency in terms of their currency and even the World Bank has tried to help in the matter.
4. Gambia
Interest Rate: 23%
Gambia has one of the highest interest rates in the sub-Saharan African region. Many analysts believe that the high interest rate is a reflection of issues with the country’s budget.
3. Malawi
Interest Rate: 25%
The interest rate in Malawi has been the highest it has ever been. According to the local government, this high interest rate will allow them to have time to work through monetary problems the country is facing. Money growth continues to be a challenge as they continue to lose money.
2. Belarus
Interest Rate: 25%
With problems increasing for most European countries especially with the conflicts with countries like Russia, Belarus has had an increase in both tax and bank interest rate. There was even a point where interest rates went as high as 50%.
1. Ukraine
Interest Rate: 30%
With all the conflicts and problems Ukraine has been having, their interest rate sharply climbed up from 19% to 30%. This move was made to help inflation and the weakening currency of Ukraine. The value of their money has been fluctuating as a result.
This has been the list of 11 countries with highest bank interest rates. Hopefully these moves will help them recover their economy.
