Staikouras: “October’s 4.86% rate on new loans is unacceptable – 10-day ultimatum to banks – Possibility of new support measures for citizens
A stern message to systemic banks to “immediately and boldly” increase deposit rates, and reduce interest rates on new loans, sent the Christos Staikouras speaking to SKAI and Giorgos Autias. The Minister of Finance even described October’s 4.86% in the interest rate of new loans as unacceptable. At the same time, the Finance Minister left the possibility open for new support measures for citizens.
10-day ultimatum to the banks
“The average interest rate on new deposits is 0.05% fixed. The average interest rate on new loans in October increased by 0.26% and is 4.86%, unacceptable. They should raise deposit rates immediately and significantly, and reduce the interest rate on new loans.”
Asked about this, the minister stated that the heads of the banks replied that they would move in this direction in the meeting they had. “We are pursuing that to be done immediately and boldly, not a 0.01% increase… In 10 days we have a meeting again. For me these wear out within 10 days. There are banking institutions in Greece, not the systemic banks, with a much higher interest rate on deposits,” he explained.
The second chapter, very important, is the supplies, noted Mr. Staikouras. “Banks charge Greek citizens a lot, and they don’t pay them what they should. I asked them to evaluate within 10 days 12 specific supplies.”
“The state is asking the banks rise to the occasion” he pointed out.
The government, noted Christos Staikouras, has done enough to support the banking system. Not the bankers, but the Greek borrowers and depositors. We cleaned up the assets of the banks, and they returned 45 billion euros of deposits to the banks in the last three years because of the government’s policy.
The Minister of Finance also clarified that there is significant progress regarding the extrajudicial mechanism. As he mentioned, the out-of-court interest rates have been reduced while he clarified that all loans in Swiss francs are accepted in the mechanism.
He also added that discussions are being held with loan servicers and banks to assess the possibility and informed borrowers can enter the mechanism.
About “red loans” clarified that he expects a proposal from the banks in two weeks that will concern vulnerable informed borrowers. He pointed out at the same time that any arrangements should be without budgetary costs and respect the European supervisory rules. “We want a proposal that the banks will bear the cost,” said the minister.
Regarding the energy crisis, the Minister of Finance stated that we have an additional reserve of 1 billion euros in 2023 to cover energy costs.
New measures for citizens
Regarding the new support measures for citizens, Mr. Staikouras stated that there is a possibility, and it has been proven that we are achieving this, to create additional fiscal space that will return in its entirety to society to those who really need it.
2023 also has permanent tax cuts and permanent increase in pensions and benefits to citizens through subsidies reminded:
- Abolition of solidarity levy for all citizens, public and private sector, concerns millions of our compatriots. This is an amount of 1.24 billion euros with which the citizens will cover part of the increased needs arising from inflation.
- A permanent reduction of insurance contributions by 3% costs another 800 million euros in the budget. No other country has permanent tax cuts in 2023
- Pensions are permanently increased by 7.75% for some pensioners and some will get the 250 euros of the cheque.
- Permanent intervention to civil servants with the abolition of the 1% solidarity levy.
- Continued help with electricity bills until August under the current mechanism and whatever else emerges from fiscal 2023.
- €500 million precision check – to be credited to citizens who really need it
- Heating allowance of 500 million euros. Those who received last year are entitled to receive the full amount in advance.
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