The Cyprus Banking Association on Thursday confirmed that banks will announce their decisions on interest rate and fee reductions by the end of the week.

Spokesman Andreas Kostouris told state broadcaster Cybc radio that as each bank will pursue a different pricing and interest rate policy, separate announcements will be made.

Kostouris also said that critics of banks’ interest rate policy have been “extremely unfair,” adding that it would be wrong for those evaluating banks to assume that interest rates are reduced horizontally with any political intervention.

The upcoming announcements are “an important step, which was expected by society and the government,” Finance Minister Makis Keravnos told Cybc during an interview on Wednesday evening.

He said that during Wednesday’s meeting with the heads of the Bank of Cyprus and the Hellenic Bank at the Presidential Palace, it was estimated that the interest rate reduction will be 1 per cent.

He added that the announcements by the banks will concern interest rate reductions and fee reductions and will be addressed to specific groups of the population, such as pensioners and young couples.

Complaints from residents of mountainous and remote areas regarding the closure of branches will also be taken into account, and it is expected that automatic teller machines will be installed in these communities to serve customers of all banks free of charge.

Commenting on the announcements made in Greece by Prime Minister Kyriakos Mitsotakis about reducing or eliminating charges, Keravnos said that a direct comparison cannot be made with the Cypriot banking sector, because many of the measures announced already apply to Cypriot banks.

He also said that money transfers, both within and outside the Republic must be made immediately and free of charge, in accordance with a European directive, which is expected to be implemented in Cyprus by the end of April.