Household deposit and lending rates in Cyprus continued to rise in December, according to a report released this week by the Central Bank of Cyprus (CBC).

The interest rate for household fixed-term deposits of up to one year increased to 1.78 per cent, up from 1.70 per cent in the previous month.

Meanwhile, the corresponding rate for non-financial corporations decreased to 1.74 per cent, down from 1.99 per cent in November.

Consumer loan rates also saw an increase, rising to 7.20 per cent from 6.99 per cent in the prior month. Similarly, mortgage loan rates climbed to 4.75 per cent, up from 4.50 per cent in November.

The CBC noted that the mortgage loan portfolio consists of various types of loans, such as first home and holiday home mortgages, each carrying different levels of risk and interest rates.

The composition of this portfolio changes monthly, affecting the weighted average interest rate regardless of broader bank rate adjustments.

Regarding new loan amounts issued in December 2024, total lending increased, primarily driven by loans granted to non-financial corporations for amounts exceeding €1 million.

The total value of new loans reached €736.2 million in December, compared to €635.7 million in the previous month.

Consumer loans, however, declined to €17.9 million, with net new loans accounting for €16.9 million, compared to €25.3 million in November, where net new loans stood at €22.3 million.

Mortgage loans also saw a drop, decreasing to €120.7 million, of which €95.5 million were net new loans, down from €129.5 million in November, when net new loans totalled €98.5 million.

In contrast, loans to non-financial corporations up to €1 million increased to €90.6 million, with net new loans amounting to €77.6 million.

This represented an increase from the €73.5 million recorded during the previous month, where net new loans stood at €57.8 million.

The most significant rise was seen in loans to non-financial corporations exceeding €1 million, which surged to €499.8 million, with net new loans at €401.9 million.

This marked a sharp increase from the previous month’s total of €398.2 million, where net new loans amounted to €154.5 million.