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Cyprus banks try to play down European Central Bank’s fresh bad news

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The European Central Bank on Thursday decided to raise its three key interest rates by 50 basis points and, based on the substantial upward revision to the inflation outlook, expects to raise them further in 2023.

The latest bad news affect millions of Eurxone citizens and Cypriots are not excluded.

That’s probably why insiders of both of the island’s large lenders – the Bank of Cyprus and Hellenic Bank – have tried to play down the fresh developments.

The question is how much banks’ customers will be able to cope with these increases and whether there is currently any restructuring activity, Philenews reports.

Bank of Cyprus insiders said that – so far – loan repayments are continuing as normal and no longer delays than those in previous months have been reported.

However, there are customers who have started asking about other options they could have in a bid to confront increased liquidity needs.

The bank looks at all cases, one by one, and where there is a genuine need it provides appropriate solutions, one told Philenews.

As for Hellenic Bank, insiders said existing customers should not worry because the majority of loans are not affected by the ECB increases.

They also noted that those who wish to do so have the option of restructuring their loans.

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