Filenews 3 July 2025
KEDIPES, following a decision of the Board of Directors, announces that as of 1 July 2025, the Interest Subsidy Scheme for informed credit facilities bearing as a base interest rate the "interest rate on the main refinancing operations of the European Central Bank" has been terminated.
The Interest Subsidy Scheme was implemented in 2023 and continued uninterrupted until the end of the first half of 2025, for borrowers who consistently adhered to the repayment schedule of their loan obligations. Under the Scheme, a favourable overall interest rate of 3.5% was applied for housing loans and 4% for credit facilities for other purposes.
Approximately 3,200 borrowers' accounts benefited from the Scheme, with the total subsidy from KEDIPES, for the years 2023, 2024 and the first half of 2025, amounting to €28.3m.
This Subsidy was established by KEDIPES as a support initiative during the period of sharp increase in borrowing costs and high inflation and aimed at the substantial relief of consistent borrowers, in a period of particularly demanding economic conditions. The decision to terminate the Interest Subsidy Scheme was taken in the context of the general de-escalation of lending rates and high inflation, as it is gradually recorded through the successive reductions of key interest rates by the European Central Bank.
At the same time, KEDIPES announces a new Plan through which the possibility of full repayment of the above Loans is offered, with a discount on the balance. For more information about the Plan, borrowers can contact KEDIPES District Service Centers in all cities.
The new Plan aims to accelerate the deleveraging of KEDIPES' loan portfolio and is in full alignment with its business plan.
