Bank of Greece reports new loans interest rate drops to 4.57%

Specifically, the weighted average interest rate on new deposits remained unchanged at 0.31% compared to the previous month, while the corresponding rate on new loans fell by 7 basis points to 4.57%. The interest rate margin between new deposits and new loans stood at 4.26 percentage points.

In the deposits segment, overnight rates for households and businesses remained stable at 0.03% and 0.10%, respectively. In contrast, the interest rate on term deposits of up to one year for households decreased to 1.11% from 1.14%, while for businesses it remained nearly unchanged at 1.71%.

For new loans, the interest rate on variable-rate mortgage loans declined by 5 basis points to 3.36%, a development seen as positive for the housing market and household financing.

At the same time, the average interest rate on consumer loans with a defined term and variable rate fell to 11.07%, while consumer loans without a fixed term—covering credit cards and revolving loans—remained at a high level of 14.72%.

Regarding businesses, the average interest rate on new corporate loans with a defined term and variable rate dropped to 4.03%, while loans to small and medium-sized enterprises recorded a marginal increase to 4.19%.

For existing balances, interest rates remained almost unchanged, with deposits at 0.30% and loans at 4.58%, reflecting a relative stabilization of the cost of money in the Greek banking sector.

This development comes at a time when the market is closely monitoring the next moves of the European Central Bank, as any changes in monetary policy are expected to directly impact both borrowing costs and deposit yields.