Raiffeisen Bank cuts the interest rate for loans holders in Swiss francs

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Raiffeisen Bank reduces the interest rate for holders of Swiss franc loans, by resetting it in advance five months before, according to the latest decreases announced by the Central Bank of Switzerland, by 0.5 percent, a press release informs.

The new interest rate comes into force on Friday, January 23.

“We decided to lower the interest on these loans now, although the reset term was on June 30, 2015, because the monthly installments level not be so affected by the increase of CHF exchange rate. It is another way to support our customers during this difficult time. The most efficient way to support the customers who have difficulty in paying rates remains the loan restructuring, that we offer from case by case since 2009, “said Vladimir Kalinov, Vice-president of Retail Division of Raiffeisen Bank.

Raiffeisen Bank has a relatively small portfolio of clients with Swiss franc exposure, respectively 8,800, and all the loans are guaranteed by real estate properties. For customers with financial difficulties who have loans in foreign currency and want to convert them in national currency, the bank offers fixed interest rates during the restructuring period, with a significant monthly rate cut (between 20 and 40 percent) and a gradual debt reduction (5 percent every two years for a maximum period of six years of restructuring, provided that the payment of the reduced rates to be up to date).

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