Alpha bank not to change profit margins on mortgage loans

- Alpha Bank in Serbia is not going to change profit margins on the mortgage loans approved earlier, while the interest rates for these loans will be changed the same as EURIBOR and LIBOR - the representatives of Alpha Bank said yesterday (June 25, 2009).

- Alpha Bank approves interest rate of 5.72% on new mortage loans in EUR, which is one of the most favorable interest rates in the market of Serbia - the President of the Executive Board of that bank, Georgios Papanastasiu, estimated.

He pointed out that that bank, in accordance with the agreement made in Vienna between the largest banks that operated in Serbia, had agreed not to reduce total of amount of granted loans in 2009 and 2010. That bank approved total of 625m EUR worth of loans in 2008.

- Since the beginning of the global financial crisis, Alpha Bank has not increased interest rates on the loans approved earlier - said Nebojša Đorđević, a member of the Executive Board of the bank.

He pointed out that, in accordance with the recommendations of the National Bank of Serbia, that bank had lowered profit margins on mortgage loans, which had been cut from 1.4% to 0.8%.

The price of loans is affected not only by the banking network, but also by the price of the source of funds, which was significantly increased with the emergence of the crisis.

The representatives of Alpha Bank have announced new services for clients, among which are reprogramming of loans and more favorable repayment terms.