Bank of Cyprus cuts its Base lending rate, delays margin hike

In a surprise move that will be appreciated by the general public, Bank of Cyprus announced that it is delaying its planned hike in lending margins by 1.25% until January 1, 2009, reversing its earlier decision according to which the increase in borrowing rates on housing loans tied to the ECB base rate was scheduled to come into effect as of November 17.
Bank of Cyprus Management will follow market developments closely and will take action where appropriate, in line with a previous comment made by CEO Andreas Eliades that “Bank of Cyprus is a dynamic and flexible organisation ready to act according to fast changing market conditions.”
Bank of Cyprus also announced that effective November 12, 2008 it is proceeding to reduce its base rate by 0.5% on all loans tied to the ECB Base rate. This is the second such reduction since October 15, 2008 when the Bank’s Base rate was cut by 0.5%, it said.