It opens from today Platform wherein borrowers they can apply for it subsidy program vulnerable households agreed banks and Ministry of Finance. The subsidy covers installment home loans, as well as loans for small businesses with a mortgage on a first residence. The first step to activate the subsidy, as the banks announced yesterday, is to issue an appropriate Vulnerable Borrower Certificate through website of the Special Secretariat for Private Debt.

As a reminder, the plan provides for a subsidy in the amount of 50% of the interest rate increase, with a starting date for calculating the increase on June 30, 2022 and for a period of 12 months. It is assumed that the amount of the subsidy for beneficiaries, according to the statement of the banks, will begin to be credited to their accounts in April. All costs to support vulnerable borrowers will be covered by contributions from four systemically important banks as part of corporate social responsibility activities.

extrajudicial

In their statement, the banks list the measures they have taken on critical issues that have been the subject of a confrontation with the Treasury Department. In particular, with regard to out-of-court settlement, banks note in a statement that the approval of loans they hold in their portfolios has increased significantly. Now, they note, the approval rate for the entire banking system is 55%, up 10 percentage points from September 2022, confirming the “constantly increasing trend towards approval.” Since the launch of the platform, systemic banks have approved about 2,800 borrower applications for a total debt exceeding 116 million euros.

The plan provides for a subsidy of 50% of the interest rate increase for twelve months.

Interest rates

With regard to interest rates and especially deposits, banks note that the yield on time deposits for a period of 6 months or more tends to increase in recent months, while the yield for a period of 12 months or more reaches a level of more than 1% depending on the bank and the amount term deposit. At the same time, the cost of borrowing in Greece, as noted by the banks in their statement, is growing at a lower rate than in the eurozone, for both households and businesses, despite the comparatively higher cost of borrowing for Greek banks and the Greek public. 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.

Stocks

Finally, with regard to commissions, each individual bank regularly reviews its pricing policy in order to ensure profitability and limit time and financial costs for businesses 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.