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Cyprus homeowners and businesses, take note: your loan payments might be about to shrink.
The Bank of Cyprus has announced that it’s cutting its reference rate on loans tied to the European Central Bank (ECB) base rate from 2.40% down to 2.15%. The change kicks in on June 11, and it means real money back in the pockets of around 12,000 borrowers.
This follows the ECB’s move to lower interest rates as inflation cools, making borrowing across Europe a little less painful.
In plain terms, if your loan is linked to the ECB rate, your monthly installment is about to drop. This is the second cut since the ECB started reducing rates last year, bringing the total drop since June 2024 to 2.35%, which is a big deal for households juggling mortgages, personal loans, or small business debt.
And it’s not just ECB-linked loans feeling the relief. Another 15,800 borrowers with loans tied to Euribor, another common benchmark, have already started seeing their rates fall. Euribor hit a peak of 4.14% last October but has since slipped to just over 2%.
The bank says these changes reflect its commitment to supporting the real economy, whether you’re a homeowner, an entrepreneur, or just trying to make ends meet.
