The new support program, that will be valid for 12 months, while the deficit in the coffers of the banks according to sources is estimated at close to 200 million euros
Today the 3-month euribor, on which the pricing of 90% of mortgages is based, is above 3%, at 3.04% and according to banks' estimates, is expected to increase by a further 50 basis points as at least two more are to come interest rate hikes by the European Central Bank. On top of the 3-month euribor interest rate, banks add a margin that remains constant and usually ranges from 2% to 2.5% depending on the policy of each bank.
Borrowers will be notified of their loan servicing cost relief by letters.
