ATHENS, Dec 14 (Reuters) – Greek banks will subsidise a part of the current rate of interest will increase for weak mortgage debtors, officers stated on Wednesday.
About 30,000 weak households which are servicing their mortgage loans to banks shall be eligible for a subsidy that covers 50% of the rate of interest will increase since July.
“We obtained the proposal from the banks and they’re going to make the related bulletins with all the main points within the coming days,” a finance ministry official instructed reporters after a gathering of Finance Minister Christos Staikouras with financial institution CEOs.
He stated the plan had obtained the banking regulator’s approval with out offering extra particulars.
A second supply instructed Reuters that the fee for the 4 systemic banks – Nationwide Financial institution of Greece (NBGr.AT), Eurobank (EURBr.AT), Piraeus Financial institution (BOPr.AT) and Alpha Financial institution (ACBr.AT) – shall be restricted to “just a few tens of tens of millions”.
The European Central Financial institution has raised rates of interest 3 times since June to rein in inflation and analysts anticipate yet another hike on Thursday.
The common floating rate of interest for a mortgage mortgage in Greece is now at 4.0%, up from about 2.8% in July.
Reporting by Lefteris Papadimas
Modifying by Gareth Jones
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