Cyprus sees increase in new lending despite rising interest rates
The Central Bank of Cyprus (CBC) announced on Thursday that new loans taken out by non-financial corporations over €1 million increased by 10 per cent in May of this year, despite a 0.52 per cent rise in lending rates.
The CBC published the interest rate statistics for Cyprus’ monetary financial institutions concerning deposits and loans, along with new loan amounts for May 2024.
These figures are included in the June 2024 edition of Monetary and Financial Statistics.
Deposit Interest Rates
The interest rate for household deposits with a maturity of up to one year decreased to 2.02 per cent in May, down from 2.16 per cent the previous month.
Conversely, the interest rate for deposits from non-financial corporations increased to 2.29 per cent from 1.82 per cent in the prior month.
Loan Interest Rates
At the same time, the interest rate for consumer loans rose to 6.49 per cent in May, compared to 6.43 per cent in the previous month.
The rate for housing loans decreased to 4.53 per cent from 4.70 per cent the previous month.
The interest rate on loans to non-financial corporations for amounts up to €1 million fell to 5.27 per cent from 5.58 per cent the previous month.
In contrast, the interest rate on loans to non-financial corporations for amounts over €1 million increased to 6.32 per cent from 5.80 per cent the previous month.
New Loan Amounts
Moreover, total new loans increased to €427.6 million in May 2024, up from €422.6 million in the previous month.
New consumer loans decreased to €21.2 million (of which €19.8 million were net new loans), compared to €22.4 million the previous month (of which €21.0 million were net new loans).
New loans for housing purchases decreased to €119.7 million (of which €92.2 million were net new loans), compared to €123.8 million the previous month (of which €90.1 million were net new loans).
New loans to non-financial corporations for amounts up to €1 million fell to €55.5 million (of which €43.3 million were net new loans), compared to €67.5 million the previous month (of which €52.4 million were net new loans).
Finally, new loans to non-financial corporations for amounts over €1 million, despite the 0.52 per cent increase in the interest rate, rose to €224 million (of which €115.7 million were net new loans), compared to €203.5 million the previous month (of which €140.8 million were net new loans).