Cyprus Business Now

Cyprus experienced a net increase of €8.5 million in total loans during the month of August 2023, following a significant reduction of €100 million in the previous month, according to a report released this week by the Central Bank of Cyprus (CBC).

Meanwhile, deposits continued to decrease for the second consecutive month, with a net decrease of €175.5 million.

According to the CBC, total deposits in August 2023 witnessed a net reduction of €175.5 million, compared to a net reduction of €301.1 million in July 2023.

This resulted in an annual growth rate of 1.7 per cent, down from 2.4 per cent in July 2023. Total deposits in August 2023 amounted to €51.8 billion, compared to €51.48 billion in August 2022.

On the other hand, total loans in August 2023 recorded a net increase of €8.5 million, reversing the trend of a net reduction of €100.3 million in July 2023.

The annual growth rate stood at -0.6 per cent, compared to -1.0 per cent in July 2023. The total outstanding loans in August 2023 reached €25.0 billion, marking a decrease of approximately €3.46 billion compared to August 2022 when it stood at €28.46 billion.

What is more, detailed data from the CBC reveals that loans to “Other Financial Intermediaries” showed a net increase of €60.1 million in August 2023 compared to the previous month, while loans to businesses decreased by €21.7 million following a €106.2 million reduction in July.

Furthermore, total loans to households saw a net reduction of €28.3 million in August 2023. Specifically, consumer loans experienced a net increase of €2.3 million for the fourth consecutive month in August 2023.

In contrast, housing loans decreased by €15.0 million, following several months of continuous growth. Additionally, other loans to households decreased for the second consecutive month, recording a net decrease of €15.7 million.

State-owned assessment management company Kedipes this week announced its commitment to make a substantial repayment of €80 million to the state treasury during the third quarter of 2023.

This decision was made during the latest session of Kedipes’ Administrative Board, convened on September 26, 2023.

The payment is part of the company’s ongoing efforts to fulfil its obligations related to the state aid received by the former Cooperative Cyprus Bank.

Since the inception of Kedipes, the total amount of cash repayments towards state aid has reached €1.08 billion.

What is more, out of this sum, €200 million has already been disbursed within the year 2023.

At the same time, Kedipes maintains a cash reserve of €60 million, earmarked for financing the “Rent Against Installment” scheme.

Finally, Kedipes is set to play a crucial role in implementing this programme, which is aimed at facilitating affordable housing options for the public.

The Cyprus Stock Exchange (CSE) ended Thursday, September 28 with marginal gains.

The general Cyprus Stock Market Index was at 130.43 points at 13:28 during the day, reflecting an increase of 0.13 per cent over the previous day of trading.

The FTSE / CySE 20 Index was at 79.10 points, representing a drop of 0.19 per cent.

The total value of transactions came up to €80,176.

In terms of the sub-indexes, the main index rose by 0.31 per cent. The alternative, investment firm and hotel index fell by 0.13 per cent, 0.73 per cent and 2.75 per cent respectively.

The biggest investment interest was attracted by the Bank of Cyprus (no change), Salamis Tours (+3.3 per cent), Petrolina (-0.89 per cent), the Cyprus Cement Company (-1.54 per cent), and K+G Complex (no change).