Cyprus Mail
Cyprus

April deposits exceed loans for the first time in six years, CBC says

By Stelios Orphanides

Deposits in the Cypriot banking system rose in April by €2.4bn to €50.5bn, almost matching the government’s Cyprus Cooperative Bank deposit, and aided by an ongoing deleveraging they exceeded loans for the first time since May 2012, the central bank said.

Deposits in the banking system dropped in April by €100m to €48.6bn compared to the month before, the Central Bank of Cyprus said in a statement on its website on Tuesday.

The increase in deposits last month was also on €74.8m monthly increase in deposits held by non-financial corporations to €11.1bn and by €6.6m held by households to €28.5bn, the central bank said. The increase in deposits in these categories more than offset a reduction by €141m in the case of other financial intermediaries and €79.4m in that of insurance corporations and pension funds.

Last month’s reduction in total outstanding lending was mainly on a €62.4m net repayments by households reducing their total debt to €20.7bn followed by other financial intermediaries with a €45m net repayment reducing its debt to €7.8bn, the central bank said. The general government repaid €2.6m in loans to banks reducing its balance to €748.1m. Loans extended to non-financial corporations rose by €9.9m to €19.4bn while the debt of pension funds rose by €0.2m to €7.7m.

In April, the government issued €2.4bn in government bonds in favour of the state-owned Cooperative Central Bank and simultaneously deposited €2.5bn to the lender to soothe depositor concern over the bank’s capital adequacy. The lender is currently negotiating with two investor groups who filed binding offers to acquire its operations.

Related Posts

Paphos municipalities get state-of-the-art street sweepers

Kyriacos Nicolaou

Bird flu identified at two locations in Famagusta area, poultry owners warned to be alert

Kyriacos Nicolaou

Mandatory road-safety messages to be included in ads for cars and alcohol

Kyriacos Nicolaou

Paphos police book 26 for traffic violations, one arrest

Kyriacos Nicolaou

Investigation into string of burglaries leads to three arrests

Kyriacos Nicolaou

Cringe Town to take over Visual Space

Eleni Philippou