On Monday, Kostis Hatzidakis elaborated on the government’s initiatives for banks announced by Prime Minister Kyriakos Mitsotakis on Sunday, in the context of the budget debate. The total cost of the interventions for the banks is estimated at 350 million euros, while the calculated cost for all banks (apart from the systemic ones) is expected to be close to 150 million. euro.

The Minister of National Economy and Finance recalled 9 very specific initiatives. Among other things, so far the government has reduced fees for transactions up to 10 euros with POS, accelerated the out-of-court mechanism and legislatively supported the creation of the 5th banking pillar, and enabled the provision of mortgage loans by non-banking institutions.

The measures in detail as presented to the Ministry

As mentioned by Mr. Hatzidakis for the bank charges, the provision will pass this week in the Parliament, but there will be a limited period of tolerance, around mid-January, until the measures come into force, due to the Christmas and New Year holidays, so that the banks can prepare and their systems internally.

Cash withdrawals in municipal units where there is only one ATM will be free of charge. The balance inquiry will also be done free of charge at any ATM of another bank in the country.

“The government proceeded to privatize the banks, which led to revenues of 3.5 billion. euro. We completed it in 2024 to send a message of reliability. Private debt has been on a downward trend since 2020, but is also lower as a percentage of GDP compared to the rest of the EU. We also have a reduction in non-performing loans” pointed out Mr. Hatzidakis.

IRIS within 2025, at the latest until October 9, will be mandatory for all businesses and for every form of transaction, the minister also clarified.

From the beginning of 2025, free medicines to 132,000 pensioners potentially eligible for the EKAS – saving 23 million. euros per year. 153,240 beneficiaries of uniform allowance with an annual benefit of 184 million. euro.

The new measures in detail

1. Zero charge for paying bills and debts to the public, insurance funds, OTAs, energy, water supply, telecommunications and insurance companies, through digital networks (web-banking/mobile-banking) from 0.6 euros which costs today in most cases . The cost is estimated at around 35 million. euro.

2. Drastic reduction in money transfer fees between banks. Maximum fee of 0.5 euro for sending money (outgoing transfer) and 0.5 euro for receiving money (incoming transfer), for amounts up to 5,000 euros per transfer, for natural persons and freelancers, between banks. It covers both simple remittances and direct credit transfers (SEPA). This corresponds to a reduction in the cost of said fees from 50% to 80% depending on the bank and the type of remittance (from 1 to 2.5 euros that it costs today). As clarified, the reduction in commissions concerns transactions made through digital means, mobile and web banking, and not at the counter.

3. Zero charge for withdrawing cash from an ATM of a bank other than the one where the account is held in remote and island areas where there is only one bank’s ATM. In addition, nationwide, zero charge for checking account balance or cards at ATMs of other Banks (from around 0.2 euros currently in effect). The cost of the supplies is 130 million. euros and all other actions for ATMs etc. is about 20 million euro.

4. The limit of small value transactions via POS is doubled to 20 euros, in which the fees are halved.

At the same time, the government recalls that in recent years it has proceeded with a series of additional initiatives for the banking system with positive results both in the field of reducing commissions and in that of strengthening competition.

Specifically:

  1. The use of the IRIS direct payment system has been expanded and the acceptance of payments for freelancers has been made mandatory.
  2. Fees for transactions up to 10 euros via POS in so-called “small retail” have been reduced by 50%.
  3. The out-of-court mechanism has been significantly improved for better and more regulation with a focus on the most vulnerable.
  4. The creation of the 5th banking pillar was supported with the aim of strengthening competition.
  5. The possibility of providing housing loans and some forms of business loans from non-banking institutions was established.
  6. A clear framework of obligations was established for servicers as well as an information platform for debtors.
  7. Interest-bearing government bonds were made tax-free, which even offer significant yields of 3.5%-4%.
  8. The activity of the Hellenic Development Bank for the financing of small and medium enterprises was strengthened.
  9. There have been initiatives by the Competition Commission to reduce fees for withdrawing money from another bank’s ATM.

At the same time:

There was voluntary support of the citizens from the banks through the donation of 50 million. euros after the disaster caused by Daniel, following the previous donation of 50 million. for Thessaly, while the “freezing” of mortgage interest rates continues.