From tomorrow, February 1, 2023, a special platform created by banks in the context of supporting informed vulnerable borrowers, which was agreed during meetings with the Minister of Finance, Mr. Christos Staikouras, to subsidize installment mortgage loans or secured loans for small businesses in the first place of residence.

In particular, according to the joint statement of the four systemically important banks, from tomorrow, borrowers will be able to submit their applications to the platform (HERE) to receive appropriate support, with the first step being the issuance of an appropriate certificate. vulnerable borrowers through the information system of the Special Private Debt Secretariat.

We remind you that the plan provides for a subsidy of 50% of the interest rate increase (with the increase calculation date of 06/30/2022) for a period of 12 months, while the corresponding amounts are expected to start being credited to the beneficiaries’ accounts in April. All costs to support vulnerable borrowers will be covered through separate corporate social responsibility activities of financial institutions through equal contributions from four systemically important banks.

Out-of-court mechanism

At the same time, the Greek banking system is using an out-of-court debt settlement mechanism for individuals, for whom four banks report that bank approval of the loans they hold in their portfolios has increased significantly. The approval rate for the entire banking system is currently at 55%, up 10 percentage points from September 2022, confirming the trend towards ever-increasing approvals. Since the launch of the platform, systemic banks have approved about 2,800 borrower applications for a total debt exceeding 116 million euros.

In addition, based on the individual policy of each bank in this matter, banks in the past and continue to implement bilateral loan agreements, ensuring the quality of their portfolios and, above all, offering sustainable solutions to their clients. “During 2022 alone, in response to the need to support households and businesses, the country’s systemic banks entered into bilateral agreements with 86,350 borrowers to receive loans worth more than 5 billion euros, of which 2.5 billion euros relate to housing loans secured by real estate.” , is characteristically noted in the announcement.

Interest rates and bank charges

With regard to the issue of interest rate and commercial policy, Banks, individually and independently, based on the policy of each, constantly adjust the interest rates on deposits and loans, as determined by the ECB, and regularly review or even reduce fees. that the provision of banking services is provided, in accordance with the current European legislation and the conditions of market competition.

Already, Greek depositors are offered a range of options that combine security and significant returns, taking into account the relevant ECB decisions and the internal policies of each bank. For example, the yield on time deposits for a period of 6 months or more has been trending upward over the past few months, while the yield for a period of 12 months or more fluctuates above 1% depending on the bank and the amount of the term deposit.

At the same time, Greek banks offer the general public, in accordance with MiFID rules, investment programs in bonds with significantly higher yields, which take into account the trend in interest rates in international markets.

At the same time, the cost of borrowing in Greece is growing at a slower pace than in the euro area for both households and businesses, despite the relatively higher cost of borrowing for Greek banks and the Greek state. Characteristically, from October to November 2022, contrary to trends in the euro area, Greece recorded a net decline in the cost of new household loans.

Finally, with regard to the procurement of banking operations and products, each bank individually and based on its commercial policy regularly reviews its pricing policy in order to ensure profitability and limit temporary and financial burdens on legal entities and individuals. In our country, individuals can now make – free of charge – money transfers of up to 500 euros per day through their mobile phone and the IRIS service.

At the same time, each bank separately and autonomously from the others reduced certain additional bank fees. Such adjustments are different for each bank, depending on the commercial policy of each of them, but indicatively they relate to the purchase of Greek government securities, the evaluation of applications for mortgages, payment of bills, subscriptions to credit cards, etc.

Greek banks are investing hundreds of millions of euros every year to strengthen the security and functionality of their technology infrastructure in order to enable their customers to immediately conduct an increasing number of digital banking transactions at a lower cost. Thus, they contribute to the strengthening of electronic transactions and the consolidation of modern transactional consciousness.

Finally, each bank, depending on its commercial policy, conducts targeted commercial promotions (programs to reward its customers for debit and credit card transactions) throughout the year in cooperation with retailers. In particular, for the Easter period, as well as for the recent Christmas period, each bank individually plans promotions with a significant increase in remuneration and compensatory benefits in categories that cover the basic needs of Clients, such as supermarkets, fuel, clothing, etc.

Development of entrepreneurship, growth of the national economy

During 2022, new financing (net credit expansion) of enterprises approached 8.5 billion euros for the entire banking system, an increase of 12.3% compared to the previous year, while banks are actively involved in the use of recovery funds. and the Resilience Fund (RAF), having analyzed and presented on behalf of its clients investment proposals worth 10.5 billion euros, about 40% financed by lending institutions. At the same time, the Greek banking system is actively working to attract foreign direct investment, which is expected to significantly exceed last year’s historic high of 5.4 billion euros or 2.9% of GDP, thus contributing to modernization. Greek economy, increasing GDP and creating more and better jobs.

The basis of the ability of banks to financially support Greek entrepreneurship and the plans of Greek citizens was the reduction of non-performing loans through the use of the “Hercules program” of the Greek state and the further strengthening of the banks’ capital. both organically and through private sector equity increases. Sustaining this result is critical both for the outlook for the Greek banking system and for our national economy as a whole, as it paves the way for meeting the investment grade target within the year.

Source: moneyreview.gr