Of Chrysostom Chufi

One would – in my opinion – reasonably be expected – that a period of general decrease in interest rates such as the one we have been in from June 2024 would be an opportunity for banks to correct “distortions” regarding the borrowing costs. Fuck! 13 months of interest rate reductions seems to be not enough and Greek banks continue to give the most expensive loans to the eurozone.

The updated European Central Bank data for July are revealing.

Starting with life loans, it is clear that Greek banks do not “multiply” to pay a fixed interest rate for more than 5 years so the corresponding loans are very expensive. Even finding the house, he will … pay very expensive.

For mortgage At a fixed interest rate of 5-10 years, Greek borrowers face the 4th highest cost, having even climbed a position from 5th last year:

  • Estonia 9.37%
  • Latvia 8.72%
  • Lithuania 6.42%
  • Greece 4.34%

Same image, 4th highest cost and for the loans with a fixed interest rate over 10 years of age:

  • Estonia 12.98%
  • Slovakia 4.71%
  • Latvia 4.18%
  • Greece 3.74%

It should be said, however, that in mortgages at 1 year fixed interest rate we are below average with 3.36% versus 3.56% as well as housing at a fixed interest rate of 1 to 5 years with 3.2% versus 3.39%. And here, the asterisk of the Baltic countries have to come in, whose loans are much more expensive than the rest, increasing the final average.

Even more adverse the picture in the “sinner” for our country consumer loans where we have third parties more expensive again behind 2 Baltic countries. We had the same position at such a time last year, and it is the category in which there is a lesser reduction in the Greece – average gap:

  • Estonia 14.04%
  • Latvia 13.08%
  • Greece 10.45%

Much better in business loans with Greek companies facing the 7th highest loan charges up to 250,000 € with up to 3 months of fixed interest rate and with a very high scissors (1.2 points) compared to the Community average:

  • Latvia 6.04%
  • Ireland 5.78%
  • Finland 5.33%
  • Estonia 5.06%
  • Luxembourg 5.01%
  • Maltese 4.9%
  • Greece 4.73%

In this category, even the average shear has almost doubled in one year. At 1.2 points from 0.63 last year in the corresponding period. 7th worst position and at loans of over 1m euros and fixed interest rate for 3 months:

  • Latvia 5.27
  • Ireland 4.84%
  • Maltese 4.31%
  • Lithuania 4.16%
  • Estonia 3.9%
  • Slovakia 3.74%
  • Greece 3.71%

Worthy of reference and the expansion of the gap with the average, though much smaller than the previous category (from 0.36 points to 0.47).

The heartbreaking picture of Greek consumers fills the interest rates that (not) are given.

For time deposits up to 1 year Greek depositors

They enjoy (sic) from the lowest interest rates in the eurozone:

  • Cyprus 1.21%
  • Slovenia 1.32%
  • Malta 1.58%
  • Ireland 1.61%
  • Belgium 1.65%
  • Portugal 1.66%
  • Greece 1.69%

Here the average gap has been reduced to half and 0.19 points.