Cyprus Business Now

Interest rates on deposits in Cyprus have experienced a slight increase, while interest rates for housing and consumer loans have decreased, according to a report published on Friday by the Central Bank of Cyprus (CBC).

Specifically, the interest rate for deposits with a term of up to one year from households increased to 0.19 per cent, compared to 0.11 per cent in the previous month, while the corresponding interest rate for deposits from non-financial companies showed an increase to 0.47 per cent, compared to -0.09 per cent in the previous month.

The interest rate on consumer loans fell to 3.57 per cent, compared to 3.59 per cent during the previous month, while the interest rate on home loans fell to 2.93 per cent, compared to 3.06 per cent last month.

In addition, the interest rate regarding loans to non-financial companies for amounts of up to €1 million increased to 4.17 per cent, compared to 4.13 per cent the previous month.

The interest rate for loans to non-financial companies for amounts exceeding €1 million recorded a decrease to 3.43 per cent, compared to 3.69 per cent during the previous month.

According to CBC data, total new loans fell to €240.3 million in October 2022, compared to €478.3 million in the previous month.

In more detail, new consumer loans decreased to €15.1 million, compared to €15.6 million in the previous month, and new loans for the purchase of housing showed a decrease to €72.7 million, compared to €102.9 million in the previous month.

In addition, new loans to non-financial companies for amounts up to €1 million decreased to €42.7 million, compared to €54.1 million in the previous month.

Finally, new loans to non-financial companies for amounts exceeding €1 million fell to €102.6m, compared to €295.9 million during the previous month.

The Central Bank of Cyprus (CBC) this week announced its decision to increase the rate of the countercyclical buffer from 0 per cent to 0.5 per cent, which will come into effect towards the end of next year.

In a statement, the central bank stated that it took the aforementioned decision, “after relevant consultation with the European Central Bank (ECB), in accordance with the Macroprudential Supervision of Institutions Laws of 2015 to 2022”.

Finally, the bank noted that the new rate will apply from November 30, 2023.

The Cyprus Stock Exchange (CSE) ended Friday, December 2 with profits.

The general Cyprus Stock Market Index was at 91.31 points at 13:20 during the day, reflecting a rise of 0.12 per cent over the previous day of trading.

The FTSE / CySE 20 Index was at 55.03 points, representing an increase of 0.13 per cent.

The total value of transactions came up to €104,636.

In terms of the sub-indexes, the main fell by 0.03 per cent while the alternative index rose by 0.37 per cent.

The hotel and investment firm indexes remained stable.

The biggest investment interest was attracted by the Bank of Cyprus (+0.27 per cent), Hellenic Bank (-0.37 per cent), Petrolina Holdings (+2.86 per cent), the Cyprus Cement Company (-0.91 per cent), and Demetra Holdings (no change).