Cyprus Mail
Cyprus

Total new loans up 65.4 per cent in December as interest rates drop

Total new loans recorded an increase of 65.4 per cent in December 2018 compared with the previous month, while lending and deposit rates fell further.
According to figures published by the Central Bank of Cyprus on Friday, total new loans rose to €407.6m, compared with €246.4m in the previous month.

Loans to non-financial corporations over €1m recorded the largest increase, to €216.9m, compared with €91.0m in the previous month. Of these €195.6m were pure new loans and €21.3 loans that have been renegotiated.

New loans for house purchase rose to €101.6m, compared with €82.8m in the previous month. Of these, €96.3m were pure new loans and €5.3m renegotiated loans.

Loans to non-financial corporations for amounts up to €1m recorded an increase to €56.1m, compared with €41.8m in the previous month, of which €53.5m were pure new loans.

Fresh loans for consumption decreased to €12.8m, compared with €13.3m in the previous month.

The interest rate on consumer credit in December 2018 registered a decrease to 2.92 per cent, compared with 3.49 per cent in the previous month. Cyprus had the fourth lowest interest rate for consumer loans in the Eurozone after Luxembourg, Spain and Belgium, while Eurozone average was 4.92 per cent.

Interest rates on loans for house purchase fell to 2.13 per cent, compared with 2.29 per cent in the previous month, while Eurozone average was 1.61 per cent.

The rate on loans to non-financial corporations for amounts up to €1m decreased to 3.41 per cent, compared with 3.53 per cent in the previous month, while the Eurozone average was 1.97 per cent.

Rates on loans to non-financial corporations for amounts over €1m rose to 3.4  per cent, compared with 3.12 per cent in the previous month, and is the third highest Eurozone interest rate in this category after Malta and Greece. The Eurozone average was 1.26 per cent.

The interest rate on deposits from households with an agreed maturity of up to one year registered a decline to 0.40 per cent, compared with 0.54 per cent in the previous month, while the Eurozone average was 0.31 per cent.

The corresponding rate on deposits from non-financial corporations recorded a marginal decrease to 0.45 per cent, compared with 0.46 per cent in the previous month and is the third highest in the Eurozone after Greece and Italy. The average Eurozone rate for this category was 0.06 per cent.



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