KEDIPES: Locks interest rates for housing and other loans at 3,5% and 4%

The Cyprus Asset Management Company (KEDIPES) has announced an interest rate subsidy for restructured loans with the base rate of the European Central Bank, so that interest rates do not exceed 3,5% for housing loans and 4% for other loans , with the Chairman of the Board of Directors of the state-owned company, Lambros Papadopoulos, stating that further measures are being considered to ease the pressures on borrowers amid the continuous increase in interest rates.

"We recognize and understand the strong pressures on household and business incomes due to the impact of rising interest rates, as they affect the ability to keep existing restructurings sustainable," Mr Papadopoulos said at a press conference on management results up to the end of 2022.

Therefore, he added, we are announcing an interest subsidy for 2023 for the restructured credit facilities, which have as base rate the ECB base rate, so that the total interest rate for 2023 does not exceed 3,5% for mortgages and 4 % for loans for other purposes.

Mr. Papadopoulos made it clear that this measure concerns accounts that will not show any delays on the capitalization date, provided for in their contract.

He finally expressed the hope that KEDIPES will be able to "soon announce other relevant measures to ease the pressure on prudent borrowers from interest rate increases".

Besides, when asked about the new measures being considered, the Managing Director of KEDIPES, Marios Papadopoulos, said that a new pricing for the restructurings is being processed.

"We expect to be able to implement it in early May, as well as a change in key rates, which is below the perimeter of loans to be resolved," he concluded.