New loans in Cyprus rise to €575.5 million in February

Cyprus witnessed a notable increase in total new loans in February 2024, reaching €575.5 million, compared to €462.7 million in the previous month, according to a report released on Friday.

This surge is attributed to a rise in loans extended to companies, amounting to approximately €130 million.

In addition, while the interest rate on loans to companies increased, the interest rate on loans for house purchases decreased.

According to a statement by the Central Bank of Cyprus (CBC), new consumer loans decreased to €23.2 million, of which €21.3 million were net new loans, down from €26.7 million in the previous month, of which €19.7 million were net new loans.

Moreover, loans for house purchases also experienced a decline to €144.1 million, of which €79.2 million were net new loans, compared to €146.3 million in the previous month, of which €71.7 million were net new loans.

Furthermore, new loans to non-financial corporations for amounts up to €1 million decreased to €57.3 million, of which €37.6 million were net new loans, down from €72.9 million in the previous month, of which €40.6 million were net new loans.

However, loans exceeding €1 million saw an increase, reaching €340.7 million, of which €124.4 million were net new loans.

This represents a rise from the €210.5 million recorded during the previous month, of which €83.3 million were net new loans.

Regarding the key developments in interest rates for new deposit and loan contracts, including renegotiated contracts, the interest rate for household deposits with a maturity of up to one year experienced a marginal decrease to 1.98 per cent, compared to 2.06 per cent in the previous month.

Similarly, the corresponding interest rate for deposits from non-financial corporations increased to 2.53 per cent, up from 2.11 per cent in the previous month.

What is more, the interest rate for consumer loans increased to 6.17 per cent, compared to 5.64 per cent in the previous month.

Meanwhile, the interest rate for loans for house purchases decreased to 5.15 per cent, down from 5.26 per cent in the previous month.

Additionally, the interest rate for loans to non-financial corporations for amounts up to €1 million increased to 5.91 per cent, compared to 5.65 per cent in the previous month.

Finally, loans exceeding €1 million recorded an increase to 6.07 per cent, up from 6.02 per cent in the previous month.