Greece: Interest rates on new loans to households and businesses have fallen

Greece: Interest rates on new loans to households and businesses have fallen
Unchanged remained in November 2018 the weighted average interest rate on all new deposits, while the equivalent of new loans declined. The interest margin fell to 4.35 percentage points.

In particular, according to the data of the Bank of Greece, the weighted average interest rate on all new deposits remained unchanged at 0.28%. In particular, the average interest rates on overnight deposits by households and businesses remained unchanged at 0.09% and 0.16%, respectively. The average interest rate on deposits with an agreed maturity of up to 1 year by households remained almost unchanged at 0.57%.

The loans

The weighted average interest rate on all new loans to households and businesses fell by 35 basis points to 4.63%.

In particular, the average interest rate on consumer loans with no fixed maturity (category including credit card loans, open loans and overdrafts on current accounts) remained almost unchanged at 14.45%. The average interest rate on consumer loans with a floating interest rate increased by 251 basis points to 11.33%.

Business

The average interest rate on unsecured business loans fell by 4 basis points to 5.05%. The corresponding interest rate on business loans stood at 6.90% from 6.93% in the previous month.

The average interest rate on business loans of a certain duration and floating rate of interest fell by 162 basis points to 3.36%. More specifically, the average interest rate on loans up to EUR 250,000 decreased by 6 basis points and stood at 5.02%, for loans from 250.001 to 1 million it fell by 32 basis points to 4.10%, while for loans above of EUR 1 million it fell by 172 basis points and stood at 3.27%. Finally, the average interest rate on housing loans with a floating interest rate stood at 2.92%, almost unchanged compared to the previous month.

Interest rates on existing deposits and loans

Unchanged remained in November 2018 the weighted average interest rate on existing balances of total deposits, while the interest rate on loans remained almost unchanged. The interest margin stood at 3.98 percentage points.

More specifically, the weighted average interest rate on all existing deposits (including overnight deposits) remained unchanged at 0.29%, while the weighted average interest rate on current loans remained almost unchanged at 4.27%./IBNA

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