Hellenic Bank on Monday announced a reduction of its key interest rate by 21 basis points, effective from November 14, 2024.
This move is expected to positively impact more than 90,000 borrowers across the island, the bank said.
The bank’s announcement confirmed that the base interest rate has been reduced from 2.12 per cent to 1.91 per cent.
“This development contributes directly to better management of borrowing costs for households and businesses, and consequently to the stimulation of economic growth,” the bank said in its announcement.
In its statement, Hellenic Bank highlighted that this reduction follows the European Central Bank’s (ECB) recent decision to lower its key interest rates.
Consequently, the bank had already reduced the interest rates on loans linked to the ECB’s rates from 3.65 per cent to 3.40 per cent, effective from October 23, 2024.
Additionally, the cuts are reflected in loans tied to interbank lending rates, such as Euribor.
“As a result, approximately 6,000 borrowers, both businesses and individuals with loans tied to the ECB’s base rate and Euribor, have already benefited from lower financing costs,” the bank said.
Finally, the bank stated that it is “entering a new era with dynamism, while remaining firmly by its customers, providing practical support to the real economy of the country and designing competitive solutions for both individual and business clients”.
