Interest rates in Cyprus continued to decline in November 2024, with home loan rates averaging 4.50 per cent, down from 4.62 per cent in October, according to the Central Bank of Cyprus (CBC).

The CBC’s latest report indicates a general decline in rates across most categories, following decisions by the European Central Bank. However, significant variations persist among financial institutions.

In addition, the report showed that Cyprus still has higher average lending rates and lower deposit rates compared to the Eurozone.

Decrease in home loan interest rates

The average interest rate on floating-rate loans for home purchases in Cyprus slightly decreased in November 2024, reaching 4.50 per cent, down from 4.62 per cent in October.

Comparatively, the Eurozone rate declined from 4.37 per cent to 4.27 per cent during the same period.

For new loan contracts, floating-rate and initial fixed-period loans of up to one year showed diverse rates among banks.

The Bank of Cyprus Public Co Ltd recorded the highest rate at 5.20 per cent, followed by Astrobank Public Co Ltd at 4.85 per cent and Eurobank Cyprus Ltd at 4.54 per cent.

The lowest rates were offered by the Housing Finance Corporation (3.53 per cent) and Ancoria Bank Ltd (3.78 per cent).

For renegotiated loans, the Bank of Cyprus again had the highest rate at 5.48 per cent, while Alpha Bank Cyprus Ltd followed with 4.69 per cent.

In contrast, Eurobank Cyprus Ltd and Hellenic Bank Public Co Ltd offered the lowest rates at 2.35 per cent and 2.57 per cent, respectively.

Business loans up to €1 million

Interest rates for loans up to €1 million to non-financial companies fell to an average of 5.01 per cent in November, down from 5.45 per cent in October.

The Eurozone average also dropped from 4.82 per cent to 4.74 per cent.

The highest rates for new loans were reported by Banque SBA (7.54 per cent), followed by Societe Generale Bank Cyprus Ltd (6.84 per cent) and Eurobank Cyprus Ltd (5.52 per cent).

On the lower end, Hellenic Bank Public Co Ltd offered 4.55 per cent, and Ancoria Bank Ltd provided 4.35 per cent.

Regarding renegotiated loans up to €1 million, Societe Generale Bank Cyprus Ltd recorded the highest rate at 6.84 per cent, followed by the Bank of Cyprus (5.83 per cent).

The lowest rates were offered by Hellenic Bank at 3.42 per cent.

Increase in large corporate loans

For loans exceeding €1 million with floating rates and initial fixed periods up to one year, the average interest rate in Cyprus increased from 4.72 per cent in October to 4.97 per cent in November.

Meanwhile, the Eurozone average fell from 4.57 per cent to 4.38 per cent.

The highest rates for new contracts were seen at Banque SBA (7.52 per cent) and Hellenic Bank (6.55 per cent).

Lower rates were offered by the Bank of Cyprus (5.07 per cent) and Societe Generale Bank Cyprus Ltd (5.15 per cent).

For renegotiated loans over €1 million, Hellenic Bank recorded the lowest rate at 3.29 per cent, down from 4.40 per cent in October.

The Bank of Cyprus saw a decrease to 4.54 per cent from 6.02 per cent, while Eurobank Cyprus Ltd remained steady around 4.86 per cent.

Decline in household deposit rates

For household time deposits up to one year in euros, the average rate in Cyprus fell to 1.70 per cent in November, down from 1.76 per cent in October and 1.98 per cent in September.

The Eurozone average was higher, at 2.61 per cent, down from 2.74 per cent.

The highest household deposit rates in Cyprus were recorded at Arab Jordan Investment Bank S.A. (3.00 per cent), National Bank of Greece (Cyprus) Ltd (2.49 per cent), and Eurobank Cyprus Ltd (2.16 per cent).

Conversely, the Bank of Cyprus offered the lowest rate at 0.72 per cent, followed by Hellenic Bank (1.50 per cent).

Decline in corporate deposit rates

For corporate time deposits up to one year, the average interest rate in Cyprus was 1.99 per cent in November, down from 2.19 per cent in October.

The Eurozone average remained higher at 2.90 per cent.

Astrobank Public Co Ltd provided the highest rates at 2.92 per cent, followed by the National Bank of Greece (Cyprus) Ltd (2.54 per cent) and Hellenic Bank (2.14 per cent).

The lowest rates were observed at the Housing Finance Corporation (0.22 per cent), Cyprus Development Bank Public Co Ltd (1.59 per cent), and the Bank of Cyprus (1.69 per cent).