Cyprus' major banks, Bank of Cyprus and Hellenic Bank, have introduced measures aiming to alleviate some borrowing costs, provide low-interest loans to vulnerable groups, and improve banking access in rural areas.

After public calls from Parliament, society, the President, and the Minister of Finance to address the high cost of borrowing and improve services for remote areas, the CEOs of the two systemic banks—Panicos Nicolaou (Bank of Cyprus) and Michalis Louis (Hellenic Bank)—presented their proposals during a meeting with the President.

• Loan Relief and Reduced Fees: Special low-interest rates for specific categories of individuals, including pensioners and vulnerable groups. Select banking fees have also been reduced.

• Improved Accessibility: Installation of shared ATMs in agricultural and mountainous areas, with no additional fees for customers of other banks.

As Brief reports, Finance Minister Makis Keravnos noted that these initiatives provide benefits to the economy, individuals, and small businesses while fostering prospects for future improvements in the banking sector.

He added that banks will examine cases of borrowers facing specific challenges in meeting their obligations for housing loans. The Finance Minister further stated that the banks' package of measures includes relief initiatives aimed at small and medium-sized enterprises.

Regarding measures related to fees and charges, the Minister of Finance assured that actions would also be taken on this matter. However, he refrained from providing detailed information, noting that announcements from the banks will be issued to provide further details. These measures will target specific groups such as the elderly, young people, and newlywed couples.

Mr. Keravnos expressed satisfaction with the upcoming measures from the banks, emphasizing that they are the result of ongoing dialogue between the government and the banking association. He noted that tens of thousands of citizens are expected to benefit from these relief measures.