Reduction in deposit rates

The prediction is based on the fact that Greek banks will have to offer term deposits with a premium

According to money-money.gr, bankers predict a decrease in interest rates on term deposits by 1-1.5 percentage points as they will be affected by two trends: On one hand the Greek banks will have to pay "a bit more" (the so called premium) than the European ones, but at the same time the general level of interest rates should be dropped in order to finance the business.

Today, after the critical recapitalization period, Greece has four systemic banks (National Bank, ALPHA, PIRAEUS, EUROBANK) and three smaller ones (Attica, Panhellenic, Probank).

 

Prediction for interest rates

The prediction of banking members is based on the fact that Greek banks will have to offer term deposits with a premium over the mid-Europe ones. And this premium will be kept as long as instability and uncertainty in the development of the fundamental figures of Greek economy linger on. Also, regardless of any systemic risk for Greece, interest rates will have to be scaled down significantly in the next 12 months for corporate financing to become feasible again.