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Diákhitel to cut interest on student loans to all-time low of 8.5%

State-owned student loan provider Diákhitel Központ (DK) will cut the interest rate on its loans from 9.5% to an all-time low of 8.5% from July 1, DK communications director András Őri told MTI.

DK's cost of financing the loans fell further this year because of lower yields, Őri said. Risk exposure and operating costs were also favorable, he added.

The benchmark yield for the three-year term on the secondary market for government securities was 6.93% on Thursday, down 316bp from twelve months earlier. Benchmark yields for the five- and ten-year terms were down 292bp at 7.25% and down 255bp at 7.60%, respectively, from June 24, 2009. (MTI – Econews)