Businesses and households in Cyprus enjoy Eurozone’s lowest interest rate charges on cards, overdrafts and roll-over loans, according to latest data from the European Central Bank.
The data shows that the island’s banking system is among three countries in the Eurozone with the lowest interest rates. The Eurozone’s average interest rate on card debt is 16.64% and 5.97% on overdrafts. In Cyprus, the average credit card rate is 10.51% and 4.72% on overdrafts. And for businesses, the average overdraft rate is 3.81%.
Malta has a lower interest rate on credit cards at 8.02%, and 5.73% for overdrafts. Finland also has a low interest rate with an average interest rate for credit card overruns at 8.36% and for overdrafts at 4.49%.
In other countries, differences are big such as Slovakia which has the Eurozone’s highest credit card interest rate at 22.22%, and 9.77% on overdrafts.
The interest rate on cards for both households and entrepreneurs in Spain, Estonia, Germany, Greece, Portugal, Latvia, and Luxembourg is high.
Specifically, Germany’s credit card debt has an interest rate of 14.76% and for roll-over loans and overdrafts it is at 7.99%. In Estonia, credit card debt has an average interest rate of 17.52% and 15.38% for overdrafts. In Greece, the average interest rate on credit cards is 16.62% and 9.58% for overdrafts.
In Spain, the average interest rate on credit card debt is 19.88%, but only 3.15% on overdrafts. In Latvia, the average credit card rate is at 19.46% and 5.48% on overdrafts. And in Portugal, the average interest rate on credit card debt is 17.64% and 5.37% on overdrafts.