Interest rates for deposits, loans rise in Cyprus

Interest rates in September revealed a mixed trajectory for deposits and loans, as reported by the Central Bank.

Household term deposits of up to one year showed a notable increase to 1.59%, surpassing the previous month’s 0.88%. Conversely, rates for deposits from non-financial corporations saw a decline to 1.67% from 1.78% in the preceding month.

The Central Bank’s data also highlighted a varied movement in borrowing rates. The interest rate for consumer loans experienced a slight dip, settling at 6.05% compared to the previous month’s 6.06%. Conversely, housing loan rates surged to 4.42% from the earlier 4.29%.

For loans to non-financial corporations, rates followed a mixed pattern. Amounts up to €1 million witnessed an increase, rising to 5.72% from 5.56%. However, loans exceeding €1 million reported a decrease to 5.59% from the previous 6.10%.

Overall lending in September saw an uptick, reaching €578.0 billion in new loans compared to €525.7 billion in the prior month. Key loan categories witnessed the following changes:

  • New consumer loans rose to €24.5 billion, up from €20.3 billion the previous month.
  • Loans for property purchases saw an increase to €172.6 billion from the preceding €154.9 billion.
  • Loans to non-financial corporations for amounts up to €1 million surged to €83.5 billion from the earlier €68.6 billion.
  • Larger loans, surpassing the €1 million mark, showed an increase to €278.7 billion from the previous €270.9 billion.