CYPRUS: Co-ops to cut lending rates further

The Cooperative Central Bank, the nationalised former co-operative lender that controls a large chunk of local deposits and loans, announced further cuts in its lending rates as of Sunday, in addition to cuts announced earlier this year, in line with the prevailing lending rates in the Eurozone.

The CCB board reviewed the recent decision by the Central Bank of Cyprus to reduce deposit rates by 1 percentage point in order to facilitate borrowers.
The Co-op decided to reduce the lending rates on performing loans as follows:
1. Housing loans cut by 1% (total 2%) starting from 2.75%;
2. Business loans cut by 2%, starting from 3%;
3. Consumer loans cut by 1%, starting from 4%;
4. Student loans cut by 0.5% to 4%;
5. Agricultural loans cut by 0.5% to 4.25%.
The reductions concern performing loans and start on March 1, affecting 132,000 borrowers with loans totalling to €5.7 bln. The reductions are expected to offer borrowers an annual relief of about €90 mln.
For non-performing loans, borrowers will benefit from a 0.5% cut n interest rates immediately after implementing a restructuring agreement and a further 0.5% when the conditions of the restructuring have been met for six months.