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Greek banks have one of the highest interest rates in Europe, both for customer loans and for credit cards. Right now a new bill is being prepared for introducing a maximum limit for credit card interest rates and it will be voted for very soon, was announced by the Ministry of Economy, Competition and Shipping.

The measure is a priority for the government and is part of the bill for regulating the obligations of individuals. It is expected that this law will include the removal of extra charges for consumers when they take out money from the ATM. Also included will be the removal of all amounts, deducted as bank expenses at the expense of the credit receiver, when forming loan documents. Those types of expenses have already been recognized by the court as illegal but some bank continue to apply them.

The minister of economy, competition and shipping Louka Katzeli said that in order to lower the credit card and loan interest rates, special attention will be paid to the average number, formed by interest rates of four European countries: France, Germany, England and Belgium. According to experts this index is within the 9% and 10% border limit, on which the state sets three to four profit points for trade banks and this way the final value of the credit card and loan interest rate will not exceed 14%.

Until now the value of the interest rates, imposed in Greece, are the highest in the whole European Union. According to data from June the interest rates of the Greek bank market have started from 15.31% and have reached to 20.83%. During the same period in Belgium the interest rates were 16.98%, in Germany – 15.28%, in Ireland – 13.2%, in Portugal – 17.9%. Meanwhile Piereos Bank announced it will lower its interest rates from 15.75% to 8.75%, for all credit card purchases. The new value comes into effect from November 1, 2009.