Cyprus sees surge in new lending during June

Net new loans in Cyprus experienced a substantial increase in June 2024, reaching a total of €330.6 million, compared to €234.9 million in May, according to a report released this week by the Central Bank of Cyprus (CBC).

Overall, new loans saw a rise to €514.9 million in June 2024, up from €391.6 million in the previous month.

This figure includes both new loan contracts and re-negotiated agreements within the reporting month.

In addition, the CBC explained that this increase is primarily attributed to a €95.7 million boost in net new loans.

New consumer loans climbed to €21.7 million from €21.2 million in the previous month, with net new loans increasing to €20.3 million from €19.8 million.

Loans for home purchases also grew, reaching €129.9 million from €119.7 million the month before, with net new loans in this sector rising to €107.1 million from €92.2 million.

Loans to non-financial corporations for amounts up to €1 million increased to €77.8 million, compared to €55.5 million in May, with net new loans growing to €53.9 million from €43.3 million.

The most significant growth was observed in loans to non-financial corporations for amounts exceeding €1 million, which surged to €272.4 million from €188.0 million.

Moreover, net new loans in this category nearly doubled, reaching €149.3 million from €79.7 million in the previous month.

The interest rate for household deposits with an agreed maturity of up to one year rose to 2.17 per cent in June, up from 2.02 per cent in May.

The corresponding interest rate for deposits from non-financial corporations also saw an increase, reaching 2.35 per cent from 2.29 per cent in May.

Meanwhile, the interest rate for consumer loans decreased to 6.18 per cent from 6.49 per cent the previous month.

The interest rate for housing loans edged slightly down to 4.52 per cent, from 4.53 per cent in May.

Furthermore, the interest rate for loans to non-financial corporations for amounts up to €1 million rose to 5.45 per cent, compared to 5.27 per cent in the previous month.

In contrast, the interest rate for loans to non-financial corporations for amounts exceeding €1 million decreased to 5.33 per cent, down from 6.33 per cent in May.