Bank of Cyprus to reduce base lending rates

Bank of Cyprus, the island's largest lender announces it will proceed with a reduction of its lending base rates as of August 4, 2014.

The decision to reduce its basic lending rates by 0.25% comes one day after the successful €1 billion capital raise through private placement.

“Bank of Cyprus Public Co. Ltd, will proceed as from the 4th August 2014 with the immediate reduction of its Debit Interest Base Rates by 0.25%,” a press release issued by the bank notes.

Base bank rates will be reduced from 5.25% to 5.00%, base rates for housing loans from 3.50% to 3.25% and base rates for business loans from 4.25% to 4.00%.

“Customers will directly benefit from the Base Rate reduction as it will be applied to 38,000 housing loans, 77,000 current accounts and 200,000 other personal/business loans. The decision is attributed to the Bank’s commitment to further support and strengthen the Cyprus economy,” the release notes.

Source: Famagusta Gazette