Bank of Greece: Increased interest rates on new loans to households and businesses

The weighted average interest rate on new deposits remained unchanged at 0.04% in January 2022, while the weighted average interest rate on new loans increased to 3.90%, according to the Bank of Greece.

In particular, the weighted average interest rate on all new deposits remained unchanged at 0.04%. The average interest rates on overnight deposits from households and businesses remained unchanged at 0.03% and 0.00% respectively. The average interest rate on deposits with an agreed maturity of up to 1 year by households also remained unchanged at 0.14%, compared to the previous month.

New Loans

The weighted average interest rate on all new loans to households and businesses increased by 14 basis points to 3.90%.

In particular, the average interest rate on consumer loans without a fixed term (category that includes credit card loans, open loans and current account overdrafts) remained almost unchanged at 14.65%.

The average interest rate on consumer loans with a specific duration and floating interest rate increased by 54 basis points to 11.88%. The average interest rate on floating rate mortgages also increased by 31 basis points to 2.36%.

The average interest rate on business loans without fixed term decreased by 10 basis points to 3.92%, while the corresponding interest rate on business loans increased by 15 basis points to 6.57%.

The average interest rate on new business loans with a specific duration and floating interest rate decreased by 4 basis points in January 2022, reaching 2.79%. The average interest rate on floating-rate loans to small and medium-sized enterprises (SMEs) fell by 72 basis points to 2.69% from 3.41% in the previous month.

Regarding the structure of interest rates in terms of the amount of the loan, it is noted that the average interest rate for loans up to 250,000 euros decreased by 9 basis points to 4.37%, for loans from 250,001 to 1 million euros increased by 14 basis points to 3 , 46% and for loans over 1 million euros decreased by 8 basis points to 2.69%.

Interest rates on existing euro deposit and loan balances

Existing Deposits
The weighted average interest rate on all existing deposits (including overnight deposits) remained unchanged at 0.04%.

In particular, the average interest rate on existing deposits with an agreed maturity of up to 2 years by households remained unchanged at 0.09%, while the corresponding interest rate by businesses remained almost unchanged at 0.06%.

Existing Loans
The weighted average interest rate on existing loans remained unchanged at 3.51%.

In particular, the average interest rate on existing mortgage balances over 5 years remained virtually unchanged at 1.90%, while the corresponding interest rates on consumer and other loans to individuals and private non-profit institutions fell by 5 basis points to 6, 29%. The average interest rate on business loans with a maturity of more than 5 years, as well as the corresponding interest rate on business loans, remained almost unchanged at 3.03% and 4.22% respectively.