Cyprus Mail
Cyprus

Deposits rise in July driven by government’s Co-op intervention

By Stelios Orphanides

The amount on deposit in the Cypriot banking system rose by €796.4m in July in a month to €50.9bn, the highest since March 2013, amid an ongoing deleveraging which reduced total credit by €74.7m to €46.2bn, the lowest in more than ten years, the Central Bank of Cyprus said.

The difference between the total amount of deposits from and loans stood at €4.8bn in July which was the highest after the 2013 banking crisis, the central bank said in a statement on its website.

The increase in last month was mainly on a €860.5m increase in deposits held by the general government to over €4bn compared with June, reflecting an attempt to soothe concerned depositors at the Cyprus Cooperative Bank, a €98.5m and a €42.9m increase in those held by non-financial corporations and other financial intermediaries to €11.3bn and €5.5bn respectively, the central bank said. Households and insurance and pension funds saw the balance of their accounts fall by €178m and €27.2m to €28.3bn and €1.7bn respectively.

The reduction in credit in July was mainly on a net €26.1m repayment in a month by non-financial companies which reduced their overall loans to €19.3bn followed by €25.8bn in repayments by the government reducing theirs to €726.2m, the central bank said. Net household lending fell by €4m to €20.3bn while that of insurance companies and pension funds rose by €0.2m to €18.2m. Other financial intermediaries saw their total loans fall by €19.1m to €5.8bn.

Related Posts

New works to be unveiled shortly at Ayia Napa’s Sculpture Park

Iole Damaskinos

Terminating pregnancy unacceptable says Bishop of Tamasos

Iole Damaskinos

Cancer Research Institute ‘a jewel’, Kyriakides says

Iole Damaskinos

Petrides: Inflation a significant challenge to recovery plan

Andria Kades

Volunteers’ contribution to society honoured in Limassol

Iole Damaskinos

EU Commission approves €373 million for Cyprus strategic agriculture plan

Iole Damaskinos