Two small banks with Greek shareholders, Emporiki and ATE Bank, have increased interest rate margins on new RON and euro-denominated loans for individuals by up to two percentage points this week, after in the past they had come up with offers meant to attract customers.
Representatives of the two lending institutions did not comment
on the decisions to increase interest rates by the time this issue
was ready for print.
This is a new step that bankers are taking towards making loans
more expensive in their bid to make additional revenues to cover
losses from non-performing loans, as well as amid expectations to
see a rise in financing costs. The two banks in fact pay
upper-level interest rates on deposits.
Emporiki boosted the interest rate margin on consumer loans not
secured by a mortgage by two percent, to 12.5% above three-month
Euribor.
ATE Bank boosted the interest rates on mortgage-backed consumer
loans by up to two percent, with the current margins being 5.5%
above six-month Robor and 8.2% above six-month Euribor.