Piraeus Bank reverses its trend on interest

Piraeus Bank Romania, local division of Greek financial group Piraeus, will lower interest on new personal loans in lei, euro and Swiss francs, without any real guarantee, including those for refinancing, to 0.5-0.75 percent, depending on the currency.

This measure goes against the market trend, with many players already increasing interest due to more expensive external financing and international financial upheaval.

Lowering interest is a measure that will be applied to loans contracted from Piraeus Bank from this time forward.

For loans in lei, interest will be 0.5 percent lower, while for euro and Swiss francs the drop on interest will be 0.75 percent.

"The fact that the bank had a spectacular rise in the volume of loans in the first nine months of 2007 proves that demand for retail segment banking products is still high," according to a statement for Business Standard by Catalin Parvu, General Manager of Piraeus Bank's Retail Banking and Operations. According to Parvu the Piraeus financial group will develop its retail banking and leasing business in 2008.

"In the second phase, we will move on to develop the asset management and investment banking segments," Parvu added.

By the end of September 2007 the bank's assets reached €2.2 billion. Piraeus Bank posted €15 million in profit for the first nine months.