articles | 16 April 2014

BoC cuts interest rates for vulnerable borrowers

The Bank of Cyprus (BoC) has cut the interest rates to the loans of 4,200 people belonging to vulnerable groups by up to 1.0%, says its chairman.

BoC chairman Christis Hassapis said the lender cut the rate by up to 1.0% on around 3,000 housing loans and 1,200 student loans.

BoC has also restructured the loans of over 1,500 unemployed people, who were also considered to be part of the vulnerable groups of the population.

This was in line with a scheme providing for a monthly instalment of €10 per month for the first year.

The BoC chairman said the scheme could be extended for an additional year if the borrower continued to be unemployed. Those who found a job were allowed to only pay interest on their loan for the first year of employment.

The Bank of Cyprus is struggling to find its footing following a Eurogroup decision last year to seize large deposits and use them for its recapitalisation. The decision also included closure of Laiki Bank, the island’s second biggest.

Source: Cyprus Mail

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