By Chrysostomos Tsoufis

In the last 48 hours, the entire planet lives in fear of maintaining high interest rates, if not of their further increase. Both the messages from the USA and yesterday’s statement by Christine Lagarde, who repeated to the letter what she had said on 9/14 at the ECB meeting about the need to keep interest rates at their current levels, set fire to the financial markets.

At the same time the Bank of Greece announced a further widening of the average interest rate gap between loans and deposits to 594 points. A gap that started the year at 524 units and only increases every month as shown by the data except for June.

Month Loans Deposits Difference

January 5.36% 0.12% 524 units

February 5.57% 0.21% 536

March 5.73% 0.23% 550

April 5.85% 0.25% 560

May 6.04% 0.28% 576

June 5.82% 0.31% 551

July 6.21% 0.35% 586

August 6.33% 0.39% 594

According to the ECB database, Greek banks offer some of the most expensive loans in the Eurozone. In February, the average interest rate in our country for a mortgage loan was at 3.78% (plus of course some margin) – 6th highest in Europe – 50 points away from the average. The same loan in August has an interest rate of 3.93%, the gap with the Community average has opened to 80 points) and the 7th most expensive:

1.Lithuania 5.87%

2. Latvia 5.12%

3. Estonia 4.57%

4. Portugal 4.18%

5. Italy 4.05%

6. Slovenia 3.99%

7. Greece 3.93%

On the contrary, the cheapest mortgages enjoyed:

-France 2.65%
-Croatia 2.99%
-Spain 3.09%

The situation in business loans is desperate. The figures show that Greek businesses looking to get a loan of up to €250,000 will pay the highest interest rate in Europe at 6.34% (+margin), 2 points above the EU average of 4.34%. The relative ranking is as follows:

-Greece 6.34%
-Latvia 5.67%
– Germany 5.47%
-Lithuania 5.46%
-Portugal 5.19%

The most…human business lending environment they offer:

-Netherlands 3.35%
-Croatia 3.65%
– Spain 3.75%

The disheartening picture for the Greeks is completed by the interest rates on deposits that are (not) given. In February the Greek depositor who wanted to lock their money in a bank for up to 1 year was getting the 5th lowest return in Europe with an average of 1.04% compared to the EU average of 1.85%. 6 months later, things are even worse at 1.22% – against a community average of 2.27%!!! – Greek depositors enjoy (sic) the fourth lowest interest rates The ranking of the “wronged” is as follows:

-Cyprus 0.41%
-Slovenia 0.44%
-Portugal 0.95%
-Greece 1.22%

On the contrary, the most….premiumed depositors in the Eurozone continue to be the Italians who enjoy interest rates of almost more than 3%. In particular, the ranking is as follows:

– Italy 3.11%
-France 3.03%
-Belgium 2.65%
-Slovakia 2.63%