Cyprus Business Now

Interest rates for corporate deposits fell to a new historical low, reaching 0.02 per cent in December 2021, while the interest rate for household deposits remained unchanged at 0.06 per cent.

Compared to November 2021 (0.05 per cent), corporate deposit rates decreased by three basis points.

Deposit interest rates have been declining for the past few years, as part of the policy of low or negative interest rates pursued by central banks around the world, including the European Central Bank (ECB).

According to the Central Bank of Cyprus, deposit rates for households remained unchanged at 0.06 per cent, remaining steady since September 2021.

Regarding interest rates on non-consumer loans, in December 2021, lending rates increased, except for consumer loans, whose interest rate fell to 2.9 per cent, 0.7 lower than the previous month.

The interest rate on home loans increased to 2.21 per cent, compared to 2.13 per cent in the month before.

According to the CBC, the interest rate on loans to non-financial corporations for amounts up to €1 million experienced a slight rise to 3.25 per cent, 0.1 per cent higher than the month before.

Finally, the interest rate on loans to non-financial corporations for amounts over €1 million increased to 2.84 per cent, compared to 2.59 per cent in the previous month.

The Ministry of Finance is examining the possibility of issuing a green bond during 2023, a Public Debt Management Office representative told the Cyprus News Agency (CNA).

“It is something that we are examining in detail, although there is no specific timetable,” the official said, clarifying that this is a preliminary decision regarding the inclusion of green bonds in the financial instruments of the Republic of Cyprus.

He noted that the issuance of a green bond is something that requires a lot of time and planning and for this purpose, no specific schedule can be provided at present.

“The soonest possible time this can be done is 2023,” he added, explaining that the amount of the bond is estimated to be at least €500 million.

Green bond issues have gained momentum in recent years, estimated to reach approximately $1 trillion in total value by 2023.

The Cyprus Stock Exchange (CSE) ended Thursday, February 3 with losses.

The main Cyprus Stock Market Index was at 69.20 points at 13:44 during the day, reflecting a drop of 0.62 per cent over the previous day of trading.

The FTSE / CySE 20 Index was at 41.57 points, which represents a decrease of 0.62 per cent.

The total value of transactions came up to €43,719.

In terms of the sub-indexes, the main index fell by 0.75 per cent, while the alternative index dropped by 0.12 per cent.

The hotel index rose by 0.1 per cent, while the investment firm index remained stable.

The biggest investment interest was attracted by Hellenic Bank (-0.74 per cent), Tourist Enterprises (+0.71 per cent), the Cyprus Cement Company (no change), the Bank of Cyprus (+1.79 per cent) and Vassiliko Cement Works (no change).