October 31, 1953

INTEREST RATE REDUCTION: The prime minister, Field Marshal Alexandros Papagos, yesterday announced the government’s decision to make a considerable reduction in interest rates as of January 1, 1954. In addition, loans to farmers from the Agricultural Bank are also being reduced by a considerable amount. (…) Papagos’s statement went as follows, «I am happy to announce that, subsequent to a report by the coordination minister (Spyros Markezinis) and the unanimous agreement of the Monetary Committee, the Cabinet decided at a meeting today to reduce bank interest rates.» As of January 1, 1954, the existing higher interest rate on banking credit of 12 percent is to be reduced to 10 percent. Bank charges are also to be reduced from 4 percent to 2 percent on the same date. The compound interest rate is to be reduced from 16 to 13 percent. ECONOMIC REASONS: A woman identified as L.P., a 25-year-old servant who was staying with her cousin in the district of Karayianneika, tried to commit suicide yesterday by drinking a large quantity of quinine. The woman was said to be in financial difficulties.