The Bank of Cyprus has responded promptly to the recent decision by the European Central Bank to lower its key interest rate. The Bank of Cyprus has announced a reduction in its base lending rate linked to the ECB rate from 2.40% to 2.15%.
The new terms will take effect on June 11, 2025.
This reduction of 0.25 percentage points will provide significant relief to borrowers by directly affecting their monthly payments. Approximately 12,000 customers with loan agreements based on the ECB base rate will experience an immediate reduction in their financial burden.Since the start of the rate reduction cycle in June 2024, the ECB's key rate has been cut by a total of 2.35 percentage points, from 4.50% to 2.15%.In addition, rate adjustments have already been initiated for a further 15.8% of borrowers whose loans are linked to Euribor. This figure also shows a steady downward trend, from a peak of 4.14% in October 2023 to the current level of 2.05%. Bank of Cyprus reaffirms its commitment to supporting the real economy, as well as local households and businesses, by offering loan products with competitive interest rates and flexible financing terms.
We are closely monitoring the macroeconomic situation and adapting our financial offerings in a timely manner. The objective is to alleviate the debt burden on customers and contribute to economic stability in the country, according to the Bank of Cyprus press service.
It is important to acknowledge the ongoing significance of Bank of Cyprus in the country's financial sector. The bank continues to showcase robust financial performance and a high level of customer confidence.
In addition to reducing interest rates, the bank is strategically investing in digital technology, green financing, and social initiatives, further consolidating its position as a responsible corporate citizen. The rate reduction is the latest measure by the bank to foster a more accessible and sustainable financial environment for all residents and businesses in Cyprus.