21 December 2024

The Bank of Cyprus and Hellenic Bank announced different but complementary measures yesterday, focusing on housing loans for young couples, lower transaction fees, support for specific age groups and vulnerable customers, and the installation of new ATMs.

Following recent political interventions and their CEOs’ meeting with the President, the two systemic banks revealed relief measures for both existing and new customers.

The Bank of Cyprus’s measures include interest rate reductions, rewards for consistent borrowers, and new housing and business loans with favourable terms, effective from 10 January 2025. Hellenic Bank’s package features new ATM installations, removal of specific charges for pensioners, free accounts for young people, and new mortgage products, to be fully implemented by 31 January 2025.

Key housing measures include:

Bank of Cyprus will subsidise interest rates by 1% for housing loans to beneficiaries of the government’s housing subsidy scheme for young couples or individuals under 41. The bank will also offer €100 million in housing loans for first homes valued up to €350,000 with fixed interest rates from 2.85% to 2.90% for three years.

Hellenic Bank will offer a new mortgage product with fixed rates of 2.95% for three years and 3.10% for five years, including a reward of up to €2,000 for household equipment purchases. For young couples under 41, an additional 0.45% interest rate reduction will apply, bringing the rate to 2.50% for three years.

Both banks emphasised the broader interest rate decline following the ECB’s monetary policy easing, with the Bank of Cyprus noting that for every 1% rate reduction, their customers will save over €40 million annually in interest payments.

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