18/02/2015 08:50
Hellenic Bank decided to cut its base rate by 1% and announced new interest rate cuts in various new and old loans.
Chairwoman of the bank, Irena Georgiadou, speaking on state radio, reported that the lending rate cut will benefit about 20 thousand customers and the total annual benefit from the lower cost of borrowing will amount to €13.5 million.
She noted that the rate cut will cover all loans in euros that have base rate of the bank, whether they are performing or not.
On the question about the allocation of new loans to enterprises, Ms. Georgiadou said Hellenic Bank has ample liquidity, but based on current market data, there is no great demand for loans.
"We have not yet covered the €70 million we provided specifically for this product, there is no proportional demand”, she noted.
Ms. Georgiadou explained that the reason people and businesses do not turn to borrowing is because the country is over-borrowed.
“Cyprus cannot bear further lending. What people need is restructuring of loans, more than anything, instead of new borrowing”.
Referring to non-performing loans, Ms. Georgiadou expressed the view that the NPLs in the system are stabilized and this is the time when all banks and customers will have to intensify efforts to be able to find solutions.
Chairwoman of the bank, Irena Georgiadou, speaking on state radio, reported that the lending rate cut will benefit about 20 thousand customers and the total annual benefit from the lower cost of borrowing will amount to €13.5 million.
She noted that the rate cut will cover all loans in euros that have base rate of the bank, whether they are performing or not.
On the question about the allocation of new loans to enterprises, Ms. Georgiadou said Hellenic Bank has ample liquidity, but based on current market data, there is no great demand for loans.
"We have not yet covered the €70 million we provided specifically for this product, there is no proportional demand”, she noted.
Ms. Georgiadou explained that the reason people and businesses do not turn to borrowing is because the country is over-borrowed.
“Cyprus cannot bear further lending. What people need is restructuring of loans, more than anything, instead of new borrowing”.
Referring to non-performing loans, Ms. Georgiadou expressed the view that the NPLs in the system are stabilized and this is the time when all banks and customers will have to intensify efforts to be able to find solutions.
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