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OTP Bank cuts lending rates for existing loans

OTP Bank has cut its lending rates for its existing loan portfolio by 0.3-1.62 percentage points; the new interest rates will be reflected in clients' repayment installments from October 1, deputy CEO Antal Kovács told MTI on Tuesday.

The interest rate cut will reduce the repayment burden by more than HUF 1.5 billion annually for the clientele concerned, Kovács added.

Kovács, in charge of the bank's retail division, said the interest rate cut has been made possible by the current macroeconomic and competitive environment. The extent of the interest rate cut varies by forint, euro- and Swiss franc-denominated consumer, housing and mortgage loans.

The bank's calculations show the interest rate cut could result in savings of more than HUF 31,000 per year for a debtor with a non-subsidized HUF 10 million housing loan maturing in 20 years.

OTP Bank had a retail loan stock of close to HUF 2,202 billion in Hungary at the end of Q1 this year, after HUF 2,186 billion at the end of last year.

Apart from cutting rates, since June 1 OTP bank has started special home and other mortgage loan offers which partly offset the weakening of the forint. (MTI-ECONEWS)