Both deposit and lending interest rates in Cyprus recorded a decline in April 2025, according to data released this week by the Central Bank of Cyprus (CBC).

At the same time, total new loans saw a sharp month-on-month decrease of €282 million, mainly due to a significant drop in new lending to non-financial corporations for amounts exceeding €1 million.

The interest rate for household time deposits with a maturity of up to one year fell to 1.26 per cent, compared with 1.41 per cent the previous month.

For deposits from non-financial corporations, the corresponding rate rose slightly to 1.37 per cent from 1.31 per cent.

What is more, consumer loan rates also decreased, dropping to 7.06 per cent from 7.40 per cent in March.

The rate for housing loans declined significantly to 3.78 per cent, compared with 4.56 per cent in the previous month.

The Central Bank noted that the housing loan portfolio includes various types of loans, such as those for primary residences or holiday homes, each carrying different levels of risk and interest.

They explained that “the composition of the portfolio changes from month to month, which means the weighted average interest rate is influenced by these shifts regardless of whether interest rates are rising or falling.”

For loans to non-financial corporations up to €1 million, the average rate decreased to 4.65 per cent, compared with 4.96 per cent in March.

However, for loans exceeding €1 million, the rate increased to 4.13 per cent, from 3.87 per cent the previous month.

In terms of new loan volumes, April 2025 saw total new loans drop to €682.2 million, down from €964.2 million in March.

In addition, new consumer loans fell to €21.8 million, of which €20.7 million were classified as net new loans, compared with €24.5 million the previous month, including €22.8 million in net new loans.

The CBC also reported that new housing loans also declined, reaching €161.8 million, of which €98.2 million were net new loans.

This was down from €188.2 million in March, including €103.8 million in net new loans.

Elsewhere, loans to non-financial corporations for amounts up to €1 million fell to €68.5 million, including €37.9 million in net new loans, compared with €82.4 million and €48.5 million respectively in the previous month.

Finally, loans to non-financial corporations exceeding €1 million recorded the sharpest drop, falling to €414.2 million, of which €159.2 million were net new loans. In March, this category had reached €661.9 million, including €483.1 million in net new loans.