The European Central Bank (ECB) recently cut interest rates again. This time by 25 basis points. The benchmark lending rate fell to 3.15%, the deposit rate to 2.75% and the benchmark refinancing rate to 2.9%. At the same time, the ECB announced its intention to review monetary policy on a regular basis in the light of updated information and changes in the inflation outlook.
It should be noted that the ECB's decision was bound to have an impact on Cyprus.
Several local banks have already announced a reduction in mortgage rates. Among them was Hellenic Bank.
Recently, the management of the financial institution announced the revision of the basic interest rate, which is linked to the ECB's key interest rate, by 0.25% to 2.9% from the previous 3.15%. The changes came into effect on Wednesday 5 February. It should be noted that this decision also affected the interest rates on loans linked to the Euribor interbank rate. Incidentally, Hellenic Bank lowered its key interest rate by 0.21% to 1.91%.
This is expected to ease the financial situation of more than 90,000 of the bank's customers and reduce the burden on borrowers, who will have lower monthly payments on loans taken out earlier. Hellenic Bank underlined that it actively supports its customers in managing their family budgets, as well as companies in maintaining or increasing their liquidity.
In an environment full of challenges and intense pressure on borrowers, Hellenic Bank is fulfilling its duty to the community. The aim is to reduce costs for borrowers and create a more favourable environment for all customers. Hellenic Bank remains committed to its mission of strengthening the Cypriot economy by developing products and services that meet modern needs. By reducing interest rates, it is building confidence among its customers and paving the way for a financial future with greater stability and growth opportunities. Hellenic Bank continues to offer mortgages with a fixed interest rate of 2.95% for the first 3 years of the loan agreement or 3.1% for the first 5 years. There are also extended privileges for those buying their first home,' the bank's management said.
Recall that Hellenic Bank began its history in 1976 with the opening of its first branch in Nicosia.
In 1985, a subsidiary, Hellenic Bank (Finance) Ltd, was established, whose main activity was asset financing, and in 1986, a subsidiary, Hellenic Bank (Investments) Ltd, which provided investment services. In 1990, Hellenic Bank opened its first International Business Centre.
In 1996, the Group acquired Barclays Bank's branch network in Cyprus, and in 1998 it opened its first branch in Greece. In the same year, the bank opened representative offices in Russia and South Africa. In the following years, Hellenic Bank developed very dynamically, opening new offices, expanding the branch network and introducing new organisational structures into the Group's structure. Currently, Hellenic Bank has more than 80 branches and 5 international business centres with representative offices throughout Europe and beyond.