BoV, Volksbank lower rates

Bank of Valletta is reducing its base rate by 0.25 per cent to 3 per cent with effect from tomorrow, and Volksbank Malta is lowering its interest rates on deposit accounts by the same amount.

This decision follows last week's announcement by the Central Bank of Malta of a reduction in its central intervention rate and discount rate by 0.25 per cent.

Consequently, BoV interest rates on all loans and overdrafts denominated in Maltese liri will reduce by 0.25 per cent. This reduction also applies to the interest rate charged on credit card accounts, which will come into effect as from the first statement issued after November 1.

The reduction in interest rates is not applicable on advances denominated in foreign currencies.

BoV's decision to reduce its base rate will also affect the interest rates payable on deposit accounts. This reduction in interest rates will also come into effect from tomorrow.

Full details of interest rates payable on deposit accounts are available on the BoV Website www.bov.com.

Volksbank's new rates affect Maltese liri deposit accounts. The bank's rates on foreign currency accounts usually change to reflect international market conditions.

The Malta-based bank recently announced plans to introduce new products to its popular range, including deposit accounts and loans in Maltese liri.

Having offered credits and home loans only in foreign currencies, the bank added deposit accounts in Maltese liri to its range of products September 1.

Herbert Skok, managing director, stated: "Volksbank Malta will soon be presenting a new Home Loan product and other financial products in the local currency.

"We are very confident that our Maltese customers will find us as a viable alternative for their banking and investment requirements. With a share capital of €167 million (Lm71.5 million), the bank has a strong financial base from which to expand its operations."

Volksbank Malta is situated in Dingli Street, Sliema, and is open from Monday to Friday from 8.30 a.m. to 3.30 p.m.