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Following the parliamentary approval of the state budget and Tuesday’s meeting at the Presidential Palace with the CEOs of Bank of Cyprus and Hellenic Bank, Finance Minister Makis Keravnos appeared on RIK’s program Challenges on Wednesday evening. The minister stated that by the end of the week, banks are expected to announce reductions in interest rates and fees. These reductions will primarily benefit specific population groups, including retirees, young people, young couples, and certain loan categories.
During the meeting with bank executives, it was estimated that the interest rate reduction would amount to 1%. When asked why the discussions were held solely with Bank of Cyprus and Hellenic Bank rather than the Association of Banks, Mr. Keravnos explained that these two banks "represent 80% of the banking sector." He clarified that the dialogue focused on the major banks but that he is also engaging with the Association of Banks.
Mr. Keravnos also addressed complaints from residents of mountainous and remote areas about the closure of bank branches. He announced plans to install automated teller machines (ATMs) in these communities, which will allow customers of all banks to access services without fees.
The Finance Minister characterized the forthcoming bank announcements as a "significant step anticipated by both society and the government."
He also highlighted that money transfers, both domestic and international, must be executed promptly and without fees, in line with a European directive set to take effect in Cyprus by the end of April.
