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Alpha Bank Cyprus Ltd announces interest rate cut

An announcement by the Alpha Bank appeared in today’s press advising its clients of a reduction in the default interest rate from 7th May 2012 in acknowledgement of the recession.

ALPHA BANK CYPRUS LTD, acknowledging the adverse effects of the economic recession and with the aim of assisting customers that experience difficulties in fulfilling their financial obligations, informs its clients that as of Monday, 7th May 2012, the Default Interest, with which all excesses and/or arrears of current accounts and/or fixed term loans and/or other banking facilities held with our Bank are charged, either in Euro or in any foreign currency, is reduced from 5.35% to 2.50%.

It is noted that the Default Interest which is charged on credit card accounts remains unaltered.

It is clarified that the relations between our clients and our Bank will be governed and/or will continue to be governed by the terms of the relevant contracts and/ or the general terms and conditions of the Bank.

Details and/or further information regarding the above may be requested from Alpha Bank Cyprus Ltd’s Branch network.

Nicosia, 26th April 2012

Readers' comments

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  • Constantin says:

    Looks more of a misleading news, as in fact they have only 3 types of loans (out of ~30 total types) that depend on this rate, and those are anyway very expensive, so cutting 2-3 percent doesn’t hurt.

    CATALOGUE OF INTEREST RATES AND CHARGES FOR INDIVIDUALS

    from their website you can read: “Interest rates have been calculated using the Bank Base Rate (B.B.R.) of 5.75% or Consumer Loan Base Rate (C.L.B.R.) of 6.25%, depending, for consumer loans and other credit facilities for individuals. For mortgages, Housing Loan Base Rate (H.L.B.R.) of 3.50% and Euribor 3m (three months) of 0.7270% dated 25/04/2012 have been used.”

    Please keep in mind that they also add a band margin to the base rates, so the actual APR payed is usually 50-100% more than the base rate

  • Geo says:

    A bank “assisting customers!!!” I smell a rat.

  • Janner says:

    How an earth can they afford to cut rates so far when, surely, they have to all they can to squeeze more out of loan payers? Maybe there are some tactics at work here!

  • andyp says:

    Costas – As they do not seem to be paying anyway I do not think they will be too bothered.

  • Costas Apacket says:

    I’m sure the Developers will be delighted!

  • Janner says:

    So, does this interest rate cut include all those with swiss franc mortgages?

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