Spending just for the sake of negative interest rates, on the other hand, is a bad idea. “The interest rates sound very tempting. But taking out loans always involves the promise of repayment,” says Christian Keuschnigg, who holds the Chair of Public Finance at the University of St. Gallen. Besides, interest rates could also rise again soon.
The interest subsidies from this also serve to ease the burden on the budget
Says Stefan Mühlemann, founder and CEO of Loanboox.
But it’s not a good business model. Waldkirch has already profited from it: Last year, the municipality took out a loan and received an interest rate of 0.25 per cent, said Aurelio Zaccari, president of the municipality, at an information event on the sports field vote.
