Cyprus saw a substantial 47 per cent increase in the issuance of new loans during the first month of the year, according to a report released this week by the Central Bank of Cyprus (CBC).

The surge, compared to January 2023, is primarily attributed to corporate loans exceeding €1 million in total value.

The report noted that net new loans for January 2024 reached €220 million, an increase from the €149 million reported during the same period last year.

The standout category driving this growth was corporate loans surpassing €1 million, totaling €83.3 million.

This marks a staggering 379 per cent increase, attributed to the unusually low performance of this category in January 2023, recording a mere €17.4 million.

Traditionally, corporate loans exceeding €1 million constitute the largest segment of new loans.

Conversely, there was a 6 per cent decline in annual terms for new housing loans, the second-largest loan category, which decreased to nearly €72 million from the previous year’s €76 million.

Moreover, new corporate loans up to €1 million in January 2024 amounted to €41 million, showing a 5 per cent increase compared to €38 million in the same month the previous year.

In addition, consumer loans experienced a remarkable 65 per cent annual increase, reaching almost €20 million, up from €12 million in January of the preceding year.

Lastly, the category of other loans witnessed a 17 per cent decrease, with net new borrowing declining to €4.4 million in January 2024, compared to €5.3 million in the same month last year.