Greek banks to review interest rates for insolvent customers
2022.12.14 12:52
Greek banks to review interest rates for insolvent customers
Budrigannews.com – Officials announced on Wednesday that a portion of the recent interest rate increases will be subsidized by Greek banks for vulnerable mortgage borrowers.
A subsidy that covers 50% of the interest rate increases that have occurred since July will be available to approximately 30,000 vulnerable households that are responsible for servicing their mortgage loans to banks.
After Finance Minister Christos Staikouras met with bank CEOs, a ministry official told reporters, “We received the proposal from the banks, and they will make the relevant announcements with all the details in the coming days.”
Without providing any additional information, he stated that the plan had been approved by the banking regulator.
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The four systemic banks, National Bank of Greece, Eurobank, Piraeus Bank, and Alpha Bank, will only incur “a few tens of millions,” according to a second source, as reported by Reuters.
Since June, the European Central Bank has increased interest rates three times to control inflation, and analysts anticipate a fourth increase on Thursday.
In Greece, the typical floating interest rate for a mortgage loan is now 4.0%, up from approximately 2.8% in July.
