The good news is that the reduction of interest rates which preceded the European Central Bank has a positive effect by reducing the cost of loans to businesses and households.

On the other hand, the effects on the interests of pension funds and public entities are required to deposit their available in the account of the Common Fund in the Bank of Greece.

By law, insurance funds are required to submit their available to the Central Bank of the country. The same obligation applies for public entities like, (universities, hospitals, insurance risk capital), which can further chose for their deposits banks reviewed as 3A. However, In our country there is no bank with such an assessment, so the choice of the Bank of Greece is the only way.

The funds that are not needed to cover fund needs end up in the account of the Common Fund BoG. After the last rate cut by the ECB, the Bank of Greece adjusted its interest rates for the Joint Capital from 2.11% to 1.78%. Simultaneously for fund management, BoG use to give a rate of 0.7% and now reduced it to 0.5%.

The benefit for households is important, since the ¼ of mortgages is linked to the base rate of the ECB. As far as corporate loans regard, the benefits are greater, as the vast majority has been granted a floating rate linked to Euribor.