The meeting of the Minister of Finance Makis Keravnos with executive officers of the commercial banks seems to have produced white smoke regarding the absorption of part of the increased interest rates on serviced mortgage loans up to €350.000.
As the KYPE is informed, the banks seem to be working on solutions on an individual basis, which may be announced within the next month.
Both sources from the Ministry of Finance and from the banks told KYPE that the meeting was very constructive.
According to the same information, the Ministry of Finance has reportedly asked the banks to proceed with moves in the direction of easing the pressure on informed mortgage borrowers in a short period of time, due to the repeated increases in the key interest rates of the European Central Bank in the wake of very high inflation.
He also asked them to do everything in consultation with the Central Bank of Cyprus, noting that he is in close and continuous contact with the Governor of the CBC, Konstantinos Herodotou. Mr. Keravnos also told the bankers that he will not indicate to the banks the ways in which they will absorb part of the increasing costs faced by the specific borrowers, acknowledging that there is no uniformity between the policies followed.
In this regard, banking sources clarified that the issue is complex, since there cannot be a unified handling of the matter. Each bank can present its own plan, which must however have the approval of the supervisory authorities from both Cyprus and Frankfurt.
The solutions under consideration include a targeted freeze on interest rates, on the model of the corresponding solution implemented in Greece, or a reward for serviced borrowers through a rebate of part of the increased interest rate.
The meeting, which lasted about an hour, was attended by the CEO of Bank of Cyprus Panikos Nikolaou, the Financial Director of Hellenic Bank, Antonis Rouvas, the outgoing CEO of Alpha Bank Cyprus and president of the Cyprus Banks Association, Konstantinos Koutentakis, the CEO of of the National Bank of Cyprus, George Ayutantis, the CEO of Astrobank, Aristeidis Vourakis, Loukas Maragos, Executive Director of cdb bank, Andreas Liveris on behalf of Societe General Bank Cyprus, Antonis Antoniou General Manager of Wealth Management and executive officer of Eurobank Cyprus , the Chief Executive Officer of Ancoria Bank Ioannis Loizou and on behalf of the Association of Banks Michalis Kronidis and Elena Frixos.
Banks understand the pressure on households, says Assoc. Banks
Credit institutions are aware of the effects of the current economic conditions on households and will consider solutions within the framework of the policy followed by each bank, the Cyprus Banks Association says in a statement after the meeting with Finance Minister Makis Keraynos.
"The Credit Institutions are aware of the effects that the current economic conditions bring to households and in this context they have come to the meeting convened by the Minister of Finance, as always, in a constructive mood", reports Syndemos.
According to the announcement, the members of the Association deal sensitively and already offer restructuring plans and solutions in the cases of our fellow citizens facing financial difficulties, taking into account the supervisory restrictions and European regulations.
"Following the meeting with the Minister of Finance, each Credit Institution, in the context of its own data and the policy it follows, will examine additional solutions to relieve households", it states.
Finally, the Association clarifies that it does not have the authority to handle matters concerning the determination of the interest rate policy of its members.