Zagreb, 17 January 2017 – Erste&Steiermärkische Bank d.d. (Erste banka) has lowered the interest rates on new home loans and EKO home loans denominated in the euro, as well as the kuna-denominated home loans and EKO home loans. The bank has lowered the fixed portion of the interest rates; in other words, the new rates are not the result of the regular adjustments based on the changes in the value of the interest rates' variable portion (EURIBOR, NRS). The lower interest rates apply to loans with both variable interest rates and fixed interest rates. In addition to the above, Erste banka is introducing another change: the maximum loan repayment period for kuna-denominated home loans with variable interest rates is being increased from 25 to 30 years.

Interest rates on new euro-denominated home loans will go down by on average 0.2 percentage points, while rates on new kuna-denominated home loans rate will go down by 0.1 percentage points. Interest rates on euro-denominated EKO home loans will be lower by an average of 0.3 percentage points while rates on new kuna-denominated EKO home loans will be lower by 0.2 percentage points. Having in mind the value of the 12-month EURIBOR, the interest rates on new home loans now start at 4.12% while interest rates on EKO home loans start as low as 3.92%.

In addition to the above, after adjusting the variable interest rates based on the new EURIBOR and NRS values, starting 1 January 2017 Erste banka has been offering new, somewhat cheaper, interest rates on existing loans. Thus interest rates on euro-denominated loans with variable interest rates taken out before 9 January 2013 are lower by 0.068 p.p., while rates on kuna-denominated loans are lower by 0.18 p.p.

Interest rates on loans taken out after 9 January 2013 tied to the 12-month EURIBOR have also been lowered. However, since interest rate adjustments for such loans are carried out once every 12-month period, depending on the date when the loan was taken out, the interest rates on those loans will be lowered upon expiration of this period.