Skip to main content

Greek borrowers hope ECB will pause raising interest rates in September

EPA/RONALD WITTEK

Banking officials explained to "Naftemporiki" that for every 100 euros loan, the borrower has been asked to pay 4.25 euros more in interest rates.

Greek borrowers were asked to pay 2.5-billion-euro additional interest rate over the last year and they are now hoping that this will change as of September.

European Central Bank President Christine Lagarde left an open window that she may pause raising interest rates as of September.

rom July 2022, Greek borrowers have been asked to pay approximately 2.5 billion euros additional interest rate, as the basic interest rate (Deposit Facility Rate), linked to Euribor, has increased by 425 basis points, from -0.50% (September 2019-July 2022) to 3.75% (yesterday).

Banking officials explained to “Naftemporiki” that for every 100 euros loan, the borrower has been asked to pay 4.25 euros more in interest rates.

Based on the current loans, which amount approximately 110 billion euros, 75% of them are affected, as some have been granted with a fixed interest rate and others are close to being paid off and have low interest. This means that this concerns performing loans of approximately 80 billion euros. However, according to some bank estimates, the effect based on the maturity scale of the loans moves to 75% in 80 billion euros. Thus, the additional interest rates amount to approximately 2.5 billion euros.