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The Central Bank of Cyprus (CBC) recently unveiled its quarterly report, revealing notable fluctuations in interest rates on various financial instruments. Household deposits with a maturity of up to one year experienced an increase, reaching 2.29%, up from 2.01% in the previous month. Concurrently, the interest rate on deposits from non-financial corporations saw a slight decline, settling at 2.19% compared to the prior month's 2.29%.
In the realm of consumer credit, there was a noteworthy decrease in the interest rate, which now stands at 5.88%, down from 6.26% in the preceding month. Conversely, the interest rate on loans for house purchases exhibited an uptick, reaching 5.16%, up from 5.04% in the previous month.
Examining loans to non-financial corporations, the interest rate for amounts up to €1 million decreased to 5.62%, down from 6% in the previous month. However, loans exceeding €1 million experienced an increase, with the interest rate rising to 5.73% from the prior month's 5.59%.
The report also delves into the volume of new loans in December 2023, amounting to €725.4 million, reflecting a decrease from the previous month's figure of €743.7 million. Notably, new consumer loans witnessed a 26% decline, totaling €17.6 million, compared to €23.8 million in the prior month. Loans for house purchases also decreased by 32% to €161.4 million, down from €237.7 million in the previous month. New loans to non-financial corporations for amounts up to €1 million decreased to €85 million, down from the prior month's €91.5 million, while loans exceeding €1 million saw an increase to €435.6 million from €381.9 million in the previous month.
The CBC's report provides insights into the dynamic landscape of interest rates and loan activity, offering a comprehensive overview of the financial environment in Cyprus.
By fLEXI tEAM