articles | 27 February 2015

Co-op announces further lending rate cuts

The Co-operative Central Bank (CCB) has announced further lending rate reductions starting on 1 March 2015, expected to benefit some 132,000 borrowers.

The CCB said it was cutting its housing loan rates by 1.0% – with a 2.75% minimum.

Business loans will see a 2.0% reduction — 3.0% minimum — and consumer loans will be cut by 1.0% — 4.0% minimum.

Student loans will be reduced to 4.0% from 4.5%, and farming loans to 4.25% from 4.75%.

Combined with recent cuts, the co-op banks’ average rate for each type of loan was as follows: housing loans 3.51%, business, 4.25%, consumer, 5.37%.

The reductions cover all existing serviced loans and will come into force on Sunday.

They will benefit 132,000 borrowers with loans worth €5.7 billion.

According to the CCB, non-performing loans will be subject to a 0.5% interest rate decrease as soon as they are restructured and a further 0.5% once the terms were met for six months.

Earlier this month, the CCB announced a 1.0% reduction in housing loan rates.

It has also cut its farming loan rates by 2.0% effective January 1 and student loans back in November 2014.

Source: Cyprus Mail

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