Banks in Cyprus reduced interest rates on housing loans in February, according to comparative figures published by the Central Bank of Cyprus on Thursday.

At the same time, most institutions also slightly lowered the interest paid on term deposits.

However, despite these reductions, lending rates for households and businesses in Cyprus remain significantly higher than those in the eurozone.

At the same time, deposit rates continue to lag well behind their European counterparts.

Regarding housing loans with a term of more than five years to households, the lowest interest rate was offered by Societe Generale at 3.28 per cent, down from 3.32 per cent in January.

It was followed by the Cyprus Housing Finance Corporation, which also lowered its rate to 3.31 per cent from 3.32 per cent.

Ancoria Bank followed with 3.57 per cent, alongside the National Bank of Greece (Cyprus) and the Cyprus Development Bank at 3.65 per cent.

Hellenic Bank posted 3.90 per cent, Alpha Bank 4.01 per cent, Astrobank 4.10 per cent, Eurobank 4.25 per cent and the Bank of Cyprus 4.54 per cent.

The average mortgage rate across all institutions stood at 4.17 per cent, compared with 2.43 per cent in the eurozone.

In terms of term deposits of up to two years from households, the Arab Jordan Investment Bank offered the highest average annual rate at 2.71 per cent, followed by the National Bank of Greece (Cyprus) at 2.38 per cent, Banque SBA at 2.25 per cent, and Jordan Kuwait Bank at 2.21 per cent.

The Housing Finance Corporation offered 1.87 per cent, Jordan Ahli Bank 1.84 per cent, Ancoria Bank 1.79 per cent, while Eurobank offered 1.78 per cent.

In addition, Alpha Bank offered 1.72 per cent, the Cyprus Development Bank 1.60 per cent, Astrobank 1.47 per cent, the Bank of Cyprus 0.78 per cent, and Hellenic Bank 0.64 per cent.

The average deposit rate across all banks was 1.11 per cent, compared with 2.44 per cent in the eurozone.

Meanwhile, business loans with a duration exceeding five years also saw a drop in most banks.

The National Bank of Greece (Cyprus) offered the lowest rate at 4.16 per cent, followed by Hellenic Bank at 4.25 per cent, Eurobank at 4.61 per cent and Alpha Bank at 4.65 per cent.

Ancoria Bank charged 5.17 per cent, the Bank of Cyprus 5.26 per cent, the Cyprus Development Bank 5.32 per cent, Banque SBA 5.44 per cent, Societe Generale 5.63 per cent and Astrobank 5.66 per cent.

The average rate on long-term business loans was 4.92 per cent, compared with 3.25 per cent in the eurozone.

For term deposits by businesses of up to two years, the highest rate was offered by Societe Generale at 2.29 per cent.

Astrobank followed with 2.23 per cent, the Cyprus Development Bank 2.18 per cent, and Jordan Kuwait Bank 2.17 per cent.

Arab Jordan Investment Bank and Banque SBA both offered 2.04 per cent, while the National Bank of Greece (Cyprus) posted 1.98 per cent, Alpha Bank 1.84 per cent, and Jordan Ahli Bank 1.82 per cent.

Hellenic Bank offered 1.68 per cent, Bank of Cyprus 1.51 per cent, Ancoria 1.50 per cent, the Housing Finance Corporation 1.26 per cent, and Eurobank 1.24 per cent.

The average rate across all institutions was 1.60 per cent, whereas the eurozone average was 2.76 per cent.