Bank of Cyprus and Hellenic Bank are expected to announce decisions on consumer charges and support measures imminently, following intense pressure from political leadership and society for financial relief.
Hellenic Bank may announce its package today, with Bank of Cyprus expected to follow by tomorrow, barring unforeseen circumstances.
The measures are expected to reduce banking costs for vulnerable groups, young couples, and mortgage applicants in remote areas, alongside broader fee reductions.
The two systemic banks are also planning to expand ATM operations in mountainous and remote regions to serve populations with limited access to digital banking services.
Following yesterday’s second meeting between Bank of Cyprus CEO Panicos Nicolaou and Hellenic Bank CEO Michalis Louis with President Nikos Christodoulides and Finance Minister Makis Keravnos, there was optimism about imminent customer relief measures.
The anticipated measures will focus on reducing or eliminating over-the-counter payment fees and providing mortgage subsidies for young couples and small-to-medium enterprises.
For context, AKEL’s recent proposal for additional bank taxation, which narrowly failed in parliament, was estimated at €50 million annually for 2023 and 2024.
Finance Minister Keravnos confirmed plans for fee-free ATM access in remote areas, even when customers use other banks’ machines.
He indicated the changes would benefit “several thousand citizens”, including consistent borrowers, pensioners, young home buyers, small businesses, and residents in remote areas.
Keravnos noted that banks currently contribute about €200 million annually in income tax and special deposit levies.
Additional revenue is expected from the new Pillar 2 tax, which imposes a 15% rate on businesses with turnover exceeding €750 million.
