With its announcement, Eurobank informs that it is freezing mortgage installments for 12 months.

Reward Program for Consistent Home Loan Customers

After a long period of very low or even negative interest rates, the sharp rise in inflationary pressures forced central banks, including the ECB, to rapidly raise their key interest rates to tame them. The rise in interest rates, due solely to the change in monetary policy, automatically weighed on floating rate loans, including mortgages.

Understanding this new reality and taking into account the fact that many households have already made a great effort to remain consistent with their mortgage loan obligations during the economic and, subsequently, the pandemic crisis, Eurobank is proceeding with a support initiative but also reward of its customers, private consistent borrowers.

Specifically, for the first interest-bearing period after 2/5/2023 (i.e. for the June 2023 tranche) and for a period of 12 monthsthe Consistent Borrower Reward Program (program) is implemented.

The aim of the PROGRAM is first, to reduce current interest rates on variable rate mortgages and second, to protect borrowers from possible future increases in reference interest rates. It is understood that borrowers will benefit fully if, during the 12-month period, benchmark interest rates are reduced by the Central Banks to levels lower than those envisaged in the SCHEDULE.

In particular, the new interest rate with the data of the PROGRAM will be done with the interbank reference rate, as it was set on 3/31/2023, reduced by approximately 20 basis points. This interest rate will be kept constant throughout the 12-month period, unless the benchmark interest rate is reduced to lower levels as part of monetary policy.

The PROGRAM does not affect the margin (spread) in addition to the reference interest rate, which is provided for in the corresponding loan agreement of each customer separately. Therefore, the total interest rate of each housing loan will be based on the above PROGRAM INTEREST rate plus the corresponding margin provided for in the loan agreement, plus the levy provided for by law.

All private holders of Floating Rate Mortgage Loans are included in the PROGRAM, provided that the loans have been disbursed by 12/31/2022 and have not been transferred in the context of non-performing loan securitizations. This applies regardless of whether they have already joined or will join the Vulnerable Households Interest Subsidy Scheme.

An additional condition for inclusion is that the loan does not show overdue debts, until 2/5/2023. In order to maintain the PLAN’s preferential pricing, the loan must remain current for all 12 months of the preferential period. The PROGRAM does not include fixed interest rate mortgages or mortgages whose interest rate is set based on the Basic Mortgage Interest Rate, as these are not affected by the change in interbank reference rates.

Consistent borrowers will be automatically enrolled in the PROGRAM, with no action required on their part. All eligible borrowers will be individually informed of their reduced loan rate and corresponding installment through the bill copies they receive. The inclusion criteria are described in detail on the Bank’s website (www.eurobank.gr).

The above Rewarding Program for Consistent Borrowers comes as a follow-up to the mortgage installment subsidy program for vulnerable households (VULNERABLE Program). As is already known, with this specific program 50% of the increase in the monthly installment of housing loans is subsidized with a reference date of 30/6/2022 and for a period of 12 months.

For information, it is stated that the period of availability of the specific program is extended until 31/7/2023 (the date until which applications can be submitted), while the first subsidies are expected to be given in April. Finally, the issuance of a ministerial decision (KYA) is expected soon, which will increase the relevant income and asset criteria by 30% (only for the purposes of the specific program), significantly expanding the scope of beneficiaries.

The cost of financing the REWARDS PROGRAM is borne exclusively by Eurobank for its customers. The development and implementation of all the above programs proves in practice the continuous interest of Eurobank in the needs of its customers, by taking initiatives that respond to the current conditions, in the context of the institutional dialogue with the Ministry of Finance._