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