Interest rates on deposits and loans in Cyprus and Greece vary significantly, with Cypriot banks generally offering lower deposit rates than their Greek counterparts, while loan rates in both countries remain above the eurozone average.

In Cyprus, the two largest banks, particularly the Bank of Cyprus, offer deposit rates below the market average.

This suggests that these institutions have sufficient liquidity and therefore do not have an urgent need to attract new deposits unless they come at a low cost.

A similar trend is even more pronounced among Greece’s major banks. The National Bank of Greece, for instance, often offers a deposit interest rate as low as 0.01 per cent, regardless of the deposit amount.

Other leading Greek banks also start their deposit rates at near-zero levels, with the average across the sector standing below 1.67 per cent.

According to data from the Central Bank of Cyprus, corporate deposits follow a similar pattern.

The Bank of Cyprus offers an average rate of 1.69 per cent, below the market average of 1.94 per cent, while Hellenic Bank stands above the average at 2.14 per cent.

On the whole, deposit interest rates in Cyprus remain lower than those in Greece and significantly below the eurozone average.

In terms of housing loan interest rates, multiple factors influence final rates beyond just loan duration and amount, including the size of the mortgage.

The two largest banks in Cyprus offer rates that align with the market average.

In Greece, the four major banks present a broader range of rates, with higher-end figures roughly matching the national average.

For corporate loans, the Bank of Cyprus tends to offer rates slightly above the market average, whereas Hellenic Bank remains in line with general market levels.

In Greece, loan rates are generally higher, with major banks often exceeding the national average.

Historically, borrowing costs in Cyprus have remained above the eurozone average, while Greece consistently registers even higher rates.

On January 28, the European Central Bank (ECB) announced its fifth consecutive rate cut, reducing its benchmark rate by 25 basis points (0.25 per cent).

This move is expected to prompt financial institutions across Europe to follow suit.

The Bank of Cyprus has already lowered its reference rate for loans linked to the ECB’s base rate from 3.15 per cent to 2.90 per cent.

Analysts widely anticipate that the ECB will continue to reduce interest rates across the eurozone in the coming months.

Finally, it should be noted that the above data was valid as of February 3, 2025.