Lending Rates Dip, Interest Margin Narrows in June

Lending rates in Greece dropped slightly in June 2025, while deposit rates remained largely stable, narrowing the interest rate margin, according to the Bank of Greece, CE Report quotes Athens-Macedonia

The average interest rate on new loans fell to 4.61%, down 5 basis points from May, while the average deposit rate held steady at 0.34%. This reduced the spread between loan and deposit rates to 4.27 percentage points.

For outstanding balances, the average loan rate dropped to 4.78%, while deposit rates stayed at 0.36%, shrinking the margin to 4.42 points.

Rates on new household deposits with a maturity of up to one year fell to 1.20%, while corporate deposit rates of the same type dropped to 1.72%.

On the lending side, floating-rate consumer loans with a defined maturity declined significantly to 10.79%, while housing loans dropped slightly to 3.52%. SME loan rates decreased to 4.15%, and the rate for large corporate loans (over €1 million) eased to 3.85%.