Consumer credit costs in Cyprus rose in July 2025 while overall new lending volumes fell sharply, according to the latest statistics released by the Central Bank of Cyprus.

The figures, published this week, form part of the August 2025 edition of the CBC’s monetary and financial statistics report.

They include average interest rates on deposits and loans, as well as data on the amounts of new euro denominated lending to euro area residents.

The figures are presented alongside comparative data for the euro area through the European Central Bank’s data portal.

The interest rate on household deposits with an agreed maturity of up to one year decreased to 1.08 per cent, compared with 1.13 per cent in June 2025.

By contrast, the corresponding rate on deposits from non-financial corporations rose to 1.21 per cent, up from 1.18 per cent the previous month.

On the lending side, consumer credit rates increased to 7.40 per cent, compared with 7.01 per cent in June.

The average interest rate on loans for house purchase decreased to 3.87 per cent, from 3.95 per cent in the previous month.

The central bank explained that the loan portfolio for house purchase includes various types such as loans for primary residences and holiday homes, which carry different levels of risk and interest rates.

As a result, shifts in the composition of the portfolio may affect the weighted average rate independently of changes in the rates charged by banks.

For non-financial corporations, loans up to one million euros carried an average interest rate of 4.29 per cent, down from 4.39 per cent in June.

At the same time, loans above one million euros registered an increase to 4.29 per cent, compared with 4.04 per cent a month earlier.

Meanwhile, pure new lending volumes declined in July 2025 to €445.3m, from a total of €743.5m, compared with €642.8m and a total of €959.5m in June.

Pure new loans for consumption rose slightly to €24.9m, from a total of €26.8m, compared with €23.2m the previous month.

Housing loans recorded a decrease to €125.1m euros, from a total of €185.9m, compared with €131.4m in June from a total of €186.6m.

New loans to non-financial corporations for amounts up to one million euros fell to €57.3m, from a total of €86.9m, compared with €61.9m the previous month.

For amounts over one million euros, loans dropped sharply to €230.9m, from a total of €425.4m, compared with €420.6m in June from a total of €643.6m.

In comparison with other euro area countries, Cyprus’ loan interest rates remain close to the median.

The average rate on outstanding household loans stood at 4.05 per cent in July, slightly above the euro area average of 3.96 per cent.

The average rate on outstanding loans to non-financial corporations stood at 4.31 per cent, compared with 3.79 per cent in the euro area.