Loan tranche reduction in Cyprus
Bank of Cyprus is lowering the reference interest rate on loans linked to the European Central Bank’s (ECB) base rate, effective this Wednesday. The rate will drop from 4.25% to 3.65%, following the ECB’s recent interest rate reductions.
In a statement, the bank, by far Cyprus’ largest, highlighted that this significant 0.60% decrease will directly benefit nearly 8,000 loan holders by reducing their monthly payments.
Additionally, the bank noted that since last year, interest rates on another 9,600 housing loans tied to the Euribor have also been declining. The Euribor rate, which peaked at 4.14% in October 2023, has gradually fallen to 3.27%.
The bank expects further decreases in both rates. According to ECB data, loan interest rates for households in Cyprus have dropped by 0.71% from January to July, compared to just a 0.12% reduction across the European Union.
Bank of Cyprus emphasized its commitment to supporting the local economy, businesses, and households by offering competitive rates and financing terms. The bank has been helping customers adjust to rising interest rates over the past few years, ensuring they could manage higher payments, the statement added.
