Hellenic Bank has announced a strategic reduction in its reference interest rate, lowering it from 1.42% to 1.18% effective August 18, 2025. This move is part of a broader recalibration that affects all fundamental interest rates, reflecting the bank’s ongoing commitment to aligning its credit offerings with market realities.
Reshaping Interest Rates Across Key Products
In its latest update, Hellenic Bank detailed adjustments across various lending products. The revised rates are as follows:
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- Core Interest Rate: reduced from 4.18% to 3.94%
- Business Loans: decreased from 3.18% to 2.94%
- Business Overdrafts: lowered from 3.18% to 2.94%
- Mortgage Loans: adjusted from 2.58% to 2.34%
- Rate-Linked Mortgage Products: adjusted from 3.43% to 3.19%
- Main Base Rate: reduced from 1.42% to 1.18%
Furthermore, this decline applies to lending rates inherited from the former Cooperative Cypriot Bank and credit facilities under Gordian Holdings Ltd., which will also decrease by 0.24%.
Implications For Affected Clients
The new rates impact all credit facilities priced under the updated structure, as well as those transitioned from the prior institutions. However, specific contractual scenarios remain unchanged: loans with a definitive maturity date for the final installment will not be altered, and instruments featuring a minimum interest rate (floor) will not automatically see a reduction. Customers with unique pricing agreements should refer to their specific terms to understand the changes fully.
Next Steps For Customers
Hellenic Bank advises clients to review the details of their credit agreements and to seek further clarification from branch representatives if necessary. This proactive measure ensures that borrowers are well-informed and can assess the impact of the adjustments on their financial obligations.
