15 March 2006

Interest Rate on Home Loans

The Greek Postal Savings Bank is decreasing its three-year Fixed Interest Rate on Home Loans by 0,75% and is maintaining unchanged the adjustable interest rates which are set by its administrators.

Despite the fact that the European Central Bank ECB raised its key interest rate by 0,25% on 03.03.2006, continuing to provide service to the community and its successful presence in the Home Loan sector, the Greek Postal Savings Bank:

• Lowered its fixed three-year interest rate for home loans by 0,75% (from 4,5% to 3,75%) on 12.03.2006.
• Maintained unchanged all the administrator-set interest rates for Home Loans (basic adjustable, special adjustable to inhabitants of border regions, large families, individuals with special needs etc.).

The Institution Administration proceeded to take this important decision wanting, on the one hand, to protect its customer base from future interest rate increases set by the European Central Bank (ECB) and, on the other hand, not to worsen the situation for socially sensitive groups amongst its customers.

Consequently the fixed interest rates in effect today are the following:

• Fixed 1-year rate 3,18%
• Fixed 3-year rate 3,75%
• Fixed 5-year rate 4,75%
• Fixed 10-year rate 5,25%
• Fixed 15-year rate 5,50%

The aforementioned interest rates do not include the 0,12% charge. Also in effect is the provision whereby, following the end of the initial fixed-rate interest period (e.g. 3 years), the customer is free to select a fixed or adjustable interest of that period, without any additional charge.

Moreover, the special adjustable interest rate available to inhabitants of border regions, large families, the handicapped, etc. remains 3,88% Greek Postal Savings Bank customers will continue to enjoy the lowest monthly payments on the market for a Home Loan (e.g. for a €100,000 loan on a three-year fixed interest rate, the interest only monthly payment is €322,50, while the capital and interest repayment is €410.

Consumer Loan Interest Rates

Where consumer loans are concerned, interest rates will remain unchanged, in order not to burden socially sensitive groups of the Bank's clientele with a 0,25% rise in interest rates set by the European Central Bank (ECB).