Firmly committed to the needs of its customers and to strengthening the Cypriot economy, the Bank of Cyprus presents a comprehensive set of measures. The measures include interest rate reductions, rewards for performing borrowers, new housing and business loans on favourable terms, as well as facilities for customers of specific age groups.

Performing Borrowers

1. Reduction of interest rates

The Bank of Cyprus responds immediately to the decisions of the European Central Bank (ECB) to reduce the Base Rate and proceeds with the reduction of the reference rate on loans linked thereto.  As of June 2024, the overall reduction in the ECB's Base Rate amounts to 1.35% (from 4.50% to 3.15%).

As far as housing loans are concerned, more than 10,000 borrowers whose loans are linked to the ECB's Base Rate are seeing their instalments reduced immediately.

It is recalled that for months now, the interest rates of another 8,000 borrowers whose housing loans are linked to the Euribor have started to be reduced. Indicatively, the 6-month Euribor that had reached 4.14% in October 2023, has gradually declined and now stands at 2.64%.

2. Loyalty scheme for performing borrowers

As already announced in all communication channels, the Bank of Cyprus will reward within the framework of the scheme those borrowers who hold housing loans with a variable interest rate based on the European Central Bank Base Rate (ECBBR) or the Euribor Rate, that had been granted before the 30^th of September 2022 on the basis of specific criteria. 

The reward is equivalent to 0.5% on the interest rate for the period 30/06/24-31/12/24.

In addition to the option to get a reward through reward points, there will also be the option to provide the reward in cash by crediting the customers' bank account (customers will be given a period of 15 days to choose how the reward will be provided through the Mobile App).

3. Grant of a personal loan of up to €5,000 at a favourable interest rate of 3% (fixed) for a period of 5 years to 5,000 performing borrowers who hold housing loans of the Bank of Cyprus for upgrading the energy of their home (e.g. installation of photovoltaic systems, equipment, etc.).

New interest rate subsidies

1. Subsidy of 1% of the interest rate on housing loans granted to beneficiaries of the government's Housing Subsidy scheme for Young Couples and/or Young Persons up to 41 years old.

The subsidy will be provided to loans with a fixed interest rate for 3 years (i.e. currently from 3.60% for a contribution of >30% to 2.60%, and for a contribution of <30%, from 3.65% to 2.65%).

Provided that after three years have passed, the pricing that will be agreed on the day of conclusion of the loan will apply.   

2. Subsidy of 1% of the interest rate on housing loans granted to beneficiaries of the government's Housing Scheme for the Revitalization of Mountainous, Peripheral and Disadvantaged Areas.

The subsidy will be provided to loans with a fixed interest rate for 3 years (i.e. currently from 3.60% for a contribution of >30% to 2.60%, and for a contribution of <30%, from 3.65% to 2.65%).

Provided that after three years have passed, the pricing that will be agreed on the day of conclusion of the loan will apply.  

3. Grant of housing loans for a total amount of €100 million for the acquisition of a first home worth up to €350,000 with a fixed interest rate from 2.85% to 2.90% (depending on the client's contribution) for 3 years.

Provided that after three years have passed, the pricing that will be agreed on the day of conclusion of the loan will apply.

4. Grant of 5,000 business loans for an mount up to €5,000 to small businesses at a preferential fixed interest rate of 3% for a period of 5 years for energy or digital upgrade purposes.

CHARGES – COMMISSIONS

For customers aged 65+

• Opening of a direct debit free of charge at the cashier
• Cash withdrawals by using a debit card from ATMs, free of charge from the Bank of Cyprus (comes into effect in the first quarter of 2025)
• Cash withdrawals from the cashier free of charge for payment accounts with basic features.
• Savings Account – No Management Fees (for one account)
• Zero charges for paying utility bills either online or at the cashier.
• Issuance of a Chequebook free of charge (comes into effect in the first quarter of 2025)

For customers aged 18-25

The Bank of Cyprus already has an 18-25 young person account with the following characteristics:

1. No management fees
2. Subscription to a debit card in euros, free of charge
3. Cash withdrawals in euros from ATMs worldwide, free of charge

New product for young persons aged 18-25

In addition, a new Quick Account product in euro will be launched in the 1st quarter of 2025 through electronic channels, for young persons aged 18 to 25.

Features:

1. No management fees
2. Subscription to a debit card in euros, free of charge
3. Cash withdrawals in euros from ATMs worldwide, free of charge
4. Cash withdrawals in foreign currency from ATMs internationally, free of charge
5. No foreign exchange fees for using the card in foreign currency

Automatic Teller Machines (ATMs)

In cooperation with the government and JCC, a number of ATMs will be installed in selected rural areas (within the 1st quarter).

The above measures will apply from 10/01/2025 unless otherwise stated.

It is noted that with the upcoming reduction of the ECB's reference rates and Euribor, for each interest reduction by 1%, the total reduction in interest for the customers of the Bank of Cyprus will exceed €40 million per year.  

The Bank of Cyprus continues to substantially support Cypriot society, proving its social and economic role in the country in practice.  Indicatively, in the 1st nine months of 2024, record loans amounting to €1.7 billion were granted.  

At the same time, we continue to support and strengthen the Bank of Cyprus Oncology Centre, the Cultural Foundation, SupportCY and the IDEA centre for start-up companies. To date, more than €70 million has been allocated to the Oncology Centre.