Hellenic Bank on Tuesday announced that the reference rate for loans linked to the European Central Bank’s (ECB) base rate will be reduced by 0.25 per cent, from 2.90 per cent to 2.65 per cent, effective from March 12, 2025.

The bank explained that this is in response to the latest interest rate cut by ECB, which cut its three key interest rates by 25 basis points, marking a shift in its monetary policy stance.

“The ongoing ECB rate reductions have also affected loan interest rates linked to interbank Euribor rates, benefiting more than 6,000 borrowers,” the bank stated.

“Furthermore, it is worth noting that Hellenic Bank recently lowered its base rate by 0.16 per cent, bringing it to 1.75 per cent,” it added.

“This reduction”, the bank explained, “has a positive impact on over 90,000 borrowers, both individuals and businesses, helping them better manage their borrowing costs.”

Hellenic Bank also said that it continues to offer a mortgage loan with a fixed interest rate of 2.95 per cent for the first three years or 3.10 per cent for the first five years of the loan agreement.

It added that this comes with a comprehensive package of extended benefits for those seeking their first home.

“This product is part of Hellenic Bank’s exclusive My Home Rewards programme, which enables customers to acquire their own home under affordable financial terms while benefiting from a combination of advantages,” the bank said in its announcement.

“The wider and pioneering rewards programme offers an immediate cashback of up to €2,000 to customers who take out a mortgage loan from Hellenic Bank for furnishing and equipping their home through partner retailers,” the announcement concluded.