11 August 2006

New Home Loan Interest Rates from the Greek Postal Savings Bank

Interest Rate on Home Loans

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

Despite the fact that on 04.08.2006 the European Central Bank ECB increased its key interest rate by 0,25%, for the fourth time in the last 9 months, the Greek Postal Savings Bank, continuing to provide service to the community and its successful presence in the Mortgage sector:

• Set the 3-year fixed interest rate on home loans at just 3,95%, on 16.08.2006,
• Maintained unchanged all the administrator-set interest rates for Home Loans (basic adjustable, special adjustable for 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 of amongst its customers.

Consequently the fixed interest rates in effect starting 16.08.06 are the following:

• Fixed 1-year rate 3,60%
• Fixed 3-year rate 3,95%
• Fixed 5-year rate 4,75%
• Fixed 10-year rate 5,25%
• Fixed 15-year rate 5,50%

The above interest rates do not include the 0,12% charge in accordance with Law 128/75. Moreover, the special adjustable interest rate for 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 monthly payment of interest alone is € 339,17, while repayment of capital and interest is € 422,30).

Consumer Loan Interest Rates

Where consumer loans are concerned, the Greek Postal Savings Bank has absorbed 60% of the successive rises to the key interest rate of the European Central Bank (ECB), in order not to put financial pressure on the socially sensitive groups of its customers.

The interest rates that will be in effect starting 16.08.2006 are:

1. Secured Personal Loans *
   
   
   • Adjustable interest rate, ranging from 5,40% to 6,40%
   • 3- to 10-year fixed interest rate ranging from 6,15% to 7%.
2. Personal Loans without security *
   
   
   • Adjustable interest rate at 7,40%
   • 3-year fixed interest rate at 7,65%
   • First year for Loan Refinancing (Transfer) unchanged (interest rate 5,75%)
   • University / school loan with adjustable interest rate unchanged (interest rate 6,15%).