Hellenic Bank Base Interest Rate
| Date | Hellenic Bank Business Loans | Hellenic Bank Business Overdrafts | Hellenic Bank | Hellenic Bank Housing Loans | Hellenic Bank Housing Loans (Linked to Hellenic Bank Base Interest Rate) | Hellenic Bank Main |
|---|---|---|---|---|---|---|
| 2024-08-16 | 3.88% | 3.88% | 4.88% | 3.28% | 4.13% | 2.12% |
| 2024-05-16 | 3.85% | 3.85% | 4.85% | 3.25% | 4.1% | 2.09% |
| 2024-02-16 | 3.72% | 3.72% | 4.72% | 3.12% | 3.97% | 1.96% |
| 2023-11-16 | 2.87% | 2.87% | 3.87% | 2.27% | 3.12% | 1.11% |
| 2023-08-16 | 2.56% | 2.56% | 3.56% | 1.96% | 2.81% | 0.8% |
| 2023-05-16 | 2.19% | 2.19% | 3.19% | 1.59% | 2.44% | 0.43% |
| 2023-02-16 | 1.98% | 1.98% | 2.98% | 1.38% | 2.23% | 0.22% |
| 2022-11-16 | 1.83% | 1.83% | 2.83% | 1.23% | 2.08% | 0.07% |
| 2022-08-16 | 1.81% | 1.81% | 2.81% | 1.21% | 2.06% | 0.05% |
| 2022-05-16 | 1.82% | 1.82% | 2.82% | 1.22% | 2.07% | 0.06% |
| 2022-02-16 | 1.82% | 1.82% | 2.82% | 1.22% | 2.07% | 0.06% |
| 2021-11-16 | 1.83% | 1.83% | 2.83% | 1.23% | 2.08% | 0.07% |
| 2021-08-16 | 1.83% | 1.83% | 2.83% | 1.23% | 2.08% | 0.07% |
| 2021-05-17 | 1.84% | 1.84% | 2.84% | 1.24% | 2.09% | 0.08% |
| 2021-02-16 | 1.85% | 1.85% | 2.85% | 1.25% | 2.1% | 0.09% |
| 2020-11-16 | 1.86% | 1.86% | 2.86% | 1.26% | 2.11% | 0.1% |
| 2020-08-17 | 1.88% | 1.88% | 2.88% | 1.28% | 2.13% | 0.12% |
| 2020-05-18 | 1.9% | 1.9% | 2.9% | 1.3% | 2.15% | 0.14% |
| 2020-02-17 | 1.91% | 1.91% | 2.91% | 1.31% | 2.16% | 0.15% |
| 2019-11-18 | 1.94% | 1.94% | 2.94% | 1.34% | 2.19% | 0.18% |
| 2019-08-16 | 2.09% | 2.09% | 3.09% | 1.49% | 2.34% | 0.33% |
| 2019-05-16 | 2.13% | 2.13% | 3.13% | 1.53% | 2.38% | 0.37% |
| 2019-02-18 | 2.25% | 2.25% | 3.25% | 1.65% | 2.5% | 0.49% |
| 2018-11-16 | 2.53% | 2.53% | 3.53% | 1.93% | 2.78% | 0.77% |
| 2018-08-16 | 2.76% | 2.76% | 3.76% | 2.16% | 3.01% | 1.0% |
| 2018-05-16 | 2.85% | 2.85% | 3.85% | 2.25% | 3.1% | 1.09% |
| 2018-02-16 | 2.94% | 2.94% | 3.94% | 2.34% | 3.19% | 1.18% |
| 2017-11-16 | 3.02% | 3.02% | 4.02% | 2.42% | 3.27% | 1.26% |
| 2017-08-16 | 3.12% | 3.12% | 4.12% | 2.52% | 3.37% | 1.36% |
| 2017-05-16 | 3.15% | 3.15% | 4.15% | 2.55% | 3.4% | 1.39% |
| 2017-02-16 | 3.23% | 3.23% | 4.23% | 2.63% | 3.48% | 1.47% |
| 2016-11-16 | 3.25% | 3.25% | 4.25% | 2.65% | 3.5% | 1.49% |
Hellenic Bank provides below the methodology for calculating the Bank’s Base Rates.
For loans granted before 1st January 2008 in Cyprus pounds
and bearing as base rate the Bank’s Base Rate the outstanding balances of which from 1st January 2008 were converted into euro:
Following the decision of the Central Bank of Cyprus dated 21st December 2007, the Bank’s Base Rate for such loans was linked with effect as from 1st January 2008 with the European Central Bank (the “ECB”) main refinancing operations Interest Rate (the “ECB Base Rate”).
- As of 16 March 2016, the ECB Base Rate was at 0.00%.
For credit facilities entered into on or after the 1st January 2008
and for credit facilities granted before 1st January 2008, other than loans in Cyprus pounds as provided in paragraph A above:
“CBC index”: The Central Bank of Cyprus typically publishes on a monthly basis the value of the interest rate applicable to the previous month’s euro-denominated deposits from households with agreed maturity up to 1 year in its Publication “Monetary and Financial Statistics” – Table 8: “Monetary Financial Institutions (MFI) Interest Rates on euro-denominated deposits (new business) by euro area residents”. Such published value will be referred to as the CBC index for the purposes of this methodology.
“Reference Rate”: The Bank shall calculate the Reference Rate on a quarterly basis. The Reference Rate shall be calculated as the average of the values of the CBC Index (as defined above) published by the Central Bank of Cyprus subsequent to the last time the Bank had conducted such calculation. Such average CBC index shall be deemed to be the “Reference Rate” and shall apply for the calculation of the Bank’s Base Rates for the following quarter rounded up to two decimal places.
Starting point for the Reference Rate is set at 1.49% which represents the latest value of the CBC index for the month of September 2016.
Each of the Bank’s Base Rates will be adjusted on a quarterly basis on 16 February, 16 May, 16 August and 16 November of each calendar year (the “Adjustment Date”). In the event that the Adjustment Date is not a business day then the Adjustment Date for the relevant quarter shall be deemed to be the following business day. [Business day shall mean a day (other than a Saturday or Sunday) on which commercial banks are open for general business in Cyprus].
For such credit facilities, the HB Base Rates are defined as follows
- Hellenic Bank Base Interest Rate = Reference Rate + 2.76%
- Hellenic Bank Business Loans Base Interest Rate = Reference Rate +1.76%
- Hellenic Bank Business Overdrafts Base Interest Rate = Reference Rate + 1.76%
- Hellenic Bank Housing Loans Base Interest Rate = Reference Rate + 1.16%
- Hellenic Bank Housing Loans Base Interest Rate (linked to Hellenic Bank Base Interest Rate) = Reference Rate + 2.01%
- Hellenic Bank Main Base Interest Rate = Reference Rate
Using the 1.49% Reference Rate of the CBC index for the month of September 2016, the HB Base Rates as at 16 November, 2016 were the following
- Hellenic Bank Base Interest Rate = 4.25%
- Hellenic Bank Business Loans Base Interest Rate = 3.25%
- Hellenic Bank Business Overdrafts Base Interest Rate = 3.25%
- Hellenic Bank Housing Loans Base Interest Rate = 2.65%
- Hellenic Bank Housing Loans Base Interest Rate (linked to Hellenic Bank Base Interest Rate) = 3.50%
- Hellenic Bank Main Base Interest Rate = 1.49%
Conditions and Parameters which may contribute to changes in the HB Base Rates
The Bank may at a future date:
- Include the cost of other types of funding obtained by Hellenic Bank in the calculation methodology of any of the Bank’s Base Rates.
- Amend the methodology so as to link each of the Bank’s Base Rates to another reference rate. In this case the respective margin over the reference rate may change accordingly.
- Amend the methodology of calculating any of the Bank’s Base Rates, if deemed appropriate, to reflect any changes in market conditions and/or the regulatory framework and/or due to the unavailability of the Reference Rate.
In the case of any change in the methodology of calculating any of Hellenic Bank Base rates, customers will be notified.
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FAQ about Base Interest Rate
What is a Base Rate?
The Base Rate is the interest rate set by a central bank or financial institution, which serves as the foundation for determining the interest rates on loans and other financial products. In Cyprus, for example, the Central Bank sets the Base Rate, which acts as a reference for banks when offering credit. Banks then add a margin or percentage to this Base Rate to calculate the interest rate offered to customers. The Base Rate is influenced by macroeconomic factors, including inflation, market conditions, and monetary policy decisions, making it an important financial tool for regulating economic activity.
How is the Base Interest Rate different from the Base Rate?
The Base Interest Rate, while related to the Base Rate, is specifically the rate charged by a bank for loans or financial products. The Base Interest Rate typically consists of the Base Rate plus an additional margin set by the bank to cover the cost of providing the loan, risks, and other operational expenses. For instance, if the Base Rate is 1.5% and the bank applies a 2% margin, the Base Interest Rate would be 3.5%. This rate can vary depending on the type of loan, the borrower’s creditworthiness, and the prevailing market conditions, making it an essential figure for borrowers to understand when considering financing options.
Why do Base Rates change over time?
Base Rates fluctuate over time due to various economic factors such as inflation, market demand for credit, and monetary policy decisions made by the central bank. When inflation rises, central banks may increase the Base Rate to control money supply and reduce inflationary pressures. Conversely, during periods of economic slowdown, the Base Rate might be lowered to stimulate borrowing and investment. This flexibility allows central banks to manage economic growth and stability, which is why Base Rates are subject to change depending on the economic environment.
How does the Base Interest Rate affect loans?
The Base Interest Rate directly impacts the cost of borrowing. When the Base Interest Rate is high, loans become more expensive because banks charge higher interest on borrowed amounts. This affects the affordability of mortgages, personal loans, and business credit. On the other hand, when the Base Interest Rate is low, borrowing costs decrease, making it easier for individuals and businesses to access credit. This rate is crucial for borrowers to understand as it influences monthly payments and the overall cost of financing, playing a key role in financial decision-making.
How can I keep track of changes in the Base Rate?
Staying informed about Base Rate changes is important for both borrowers and savers. You can track these changes through central bank announcements, financial news outlets, or directly from your bank. Many banks also provide updates on their websites about any adjustments to the Base Rate or Base Interest Rate. Additionally, financial apps and services offer notifications when significant rate changes occur, ensuring that you stay informed and can plan your financial decisions accordingly.
