13 October 2006

New Decreased Home Loan Interest Rates from the Greek Postal Savings Bank

Despite the fact that on 11.10.2006 the European Central Bank (ECB) increased its key interest rate by 0.25%, for the fifth time in the last 10 months, the Greek Postal Savings Bank, continuing to provide service to the community and its successful presence in the Mortgage sector, is:

• Cutting 0,25% to 0,30% off 5-, 10- and 15-year fixed interest rates, keeping its profit to a minimum to the benefit of its clientele.
• Offering a new product in adjustable rate home loans, with a 3-year fixed margin of 0,70% (for loans of 100.000 euros and above) financing up to 100% of the cost, and in this manner providing an important subsidy to borrowers.
• Cutting its margin on new adjustable rate loans of up to €100.000 by 0,25%. Leaving essentially unchanged the exceptionally low adjustable interest rates to special category clients (those with large families, the handicapped etc.).
• Readjusting 1 and 3 year fixed interest rates only to the amount absolutely necessary (in order to cover money and administration costs).
• Extending to 31.12.2006 borrowers' exemption from paying legal and engineering costs.

The Bank Administration proceeded to make 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.

On Wednesday 18.10.2006 the Greek Postal Savings Bank base interest rates for new Home Loans and transfers of Home Loans will be as follows*:

Greek Postal Savings Bank customers will continue to enjoy the lowest monthly payments on the market for their Home Loans (e.g. for a €100.000 Extra Eurohome 2 loan with an adjustable interest rate, the monthly payment of interest alone is € 339,17, while repayment of capital and interest is € 422,30).

*Does not include the 0.12% charge in accordance with Law 128/75.