top of page
Search

New Loans in Cyprus Reach €578 Million in September 2023

In Cyprus, new loans surged to €578 million in September 2023, marking a notable increase of €52.3 million compared to the previous month, as reported by the Central Bank of Cyprus (CBC) in a recent release.

New Loans in Cyprus Reach €578 Million in September 2023

The most significant increase, amounting to €17.7 million, was observed in new housing loans, underscoring the continued demand in the real estate sector.


Moreover, changes in interest rates were noted, with household time deposit rates witnessing a significant 71 percentage point increase, reflecting evolving financial dynamics in the country. Housing loan interest rates also grew by 13 percentage points.


New consumer loans expanded to €24.5 million, up from €20.3 million in the previous month, indicating consumers' appetite for financing personal expenses and purchases.


New housing loans also saw a rise, reaching €172.6 million, compared to €154.9 million in the prior month. This data suggests sustained activity in the housing market.


Loans to non-financial corporations for amounts up to €1 million recorded an increase to €83.5 million, compared to €68.6 million in the previous month. This may signify small and medium-sized enterprises seeking financial support for their operations.

COMPANY MANAGEMENT &  SECRETΑRIAL SERVICES

Loans to non-financial corporations for amounts exceeding €1 million also experienced an uptick, reaching €278.7 million, up from €270.9 million in the previous month. This suggests that larger businesses may be seeking funding for expansion or investment.


The CBC also reported changes in interest rates, with household time deposits with a maturity of up to one year increasing to 1.59 per cent, compared to the previous month's 0.88 per cent. In contrast, the interest rate for deposits from non-financial corporations decreased slightly to 1.67 per cent, down from 1.78 per cent in the previous month.


For borrowers, the interest rate for consumer loans decreased marginally to 6.05 per cent, compared to the previous month's 6.06 per cent. Housing loans, on the other hand, saw a slight increase in interest rates, reaching 4.42 per cent, up from 4.29 per cent in the previous month.


Interest rates for loans to non-financial corporations also witnessed changes. For loans up to €1 million, the interest rate increased to 5.72 per cent, compared to 5.56 per cent in the previous month. Meanwhile, loans to non-financial corporations for amounts exceeding €1 million recorded a decrease in interest rates to 5.59 per cent, down from 6.10 per cent in the previous month.


These developments in loan activity and interest rates provide insights into the evolving financial landscape in Cyprus, with increased demand for housing loans and shifting interest rate dynamics for both savers and borrowers.

By fLEXI tEAM


Comments


bottom of page