Fiduciam holds euro rates despite ECB increase
Fiduciam, the institutionally backed short-term and development lender, has decided not to increase its euro interest rates following the European Central Bank’s decision to raise its key interest rates by 25 basis points.
The ECB’s increase lifts the deposit facility rate to 2.25%, effective from 17 June 2026. The ECB Survey of Monetary Analysts expects the deposit facility rate to increase further to 2.50% in Q3 2026 and to remain at this level until Q2 2027, with a gradual decrease thereafter to 2.00% in Q4 2028, the level at which the rate stood before the ECB’s June 2026 rate hike.
Fiduciam provides fixed interest rates on its bridging and development loans, unlike many other lenders operating in the same segment. As a result, existing Fiduciam borrowers are unaffected by the ECB’s latest rate increase.
In addition, Fiduciam has decided not to increase the fixed euro interest rates it offers on new loans. New euro loans will therefore continue to be offered at the same fixed interest rates as those established at the beginning of 2026.
Eurozone inflation has recently increased, driven in part by the impact of the Middle East conflict on energy prices and broader uncertainty. However, against the backdrop of the Memorandum of Understanding announced by the United States and Iran, Fiduciam expects the current inflationary pressure to prove short-lived.
Johan Groothaert, CEO of Fiduciam, commented: “Fiduciam has always lent on a fixed-rate basis, which eliminates financing cost risk for entrepreneurs and developers. Existing borrowers therefore know exactly what their financing costs are, regardless of changes in central bank rates.
“We believe financial institutions are better placed to manage interest rate risk than SME borrowers. Absorbing that risk, rather than passing it on to borrowers, also has the added benefit of supporting the credit quality of our loan book.
“For new euro loans, we will continue to offer the same fixed interest rates as those established at the outset of this year. Our decision to maintain rates for new loans reflects Fiduciam’s strong financial position, our confidence in the resilience of the market, and our continued commitment to providing borrowers with certainty.”