Net new loans in Cyprus declined in November 2025, according to a report released this week by the Central Bank of Cyprus (CBC).

Specifically, net new loans fell to €256.3 million during this time, from total new loans of €565.2 million, compared with €429.4 million, from total new loans of €624.9 million in the previous month.

The Central Bank of Cyprus’ report also contained statistical data on average interest rates applied by monetary financial institutions in Cyprus on deposits and loans to euro area residents in euros, along with data on new lending volumes for the reference month of November 2025.

The data were included in the Monetary and Financial Statistics publication of December 2025, while comparative figures for euro area countries are available through the European Central Bank Data Portal.

The Central Bank said the main developments in interest rates for new deposit and loan contracts, including renegotiated contracts, were analysed in detail.

The interest rate on household time deposits up to one year increased to 1.13 per cent, compared with 1.07 per cent in the previous month.

The corresponding interest rate on deposits from non-financial corporations declined to 1.17 per cent from 1.23 per cent a month earlier.

The interest rate on consumer loans rose to 6.95 per cent in November 2025, up from 6.88 per cent in the previous month.

The interest rate on loans for house purchases increased to 3.86 per cent from 3.73 per cent in the previous month.

The Central Bank explained that the mortgage loan portfolio of monetary financial institutions consists of various types of housing loans, such as loans for a primary residence or a holiday home, which carry different risk profiles and interest rates.

It added that the composition of this portfolio changes from month to month, meaning the weighted average interest rate is affected by these shifts regardless of increases or decreases in banks’ lending rates.

The interest rate on loans to non-financial corporations of up to €1 million remained unchanged at 4.39 per cent compared with the previous month.

The interest rate on loans to non-financial corporations exceeding €1 million increased to 4.50 per cent from 3.69 per cent a month earlier due to the predominance of higher-risk loans.

The Central Bank said net new loans fell overall in November 2025, reaching €256.3 million from total new loans of €565.2 million, compared with €429.4 million from total new loans of €624.9 million in October 2025.

Net new consumer loans declined to €20.4 million, from total new loans of €23.4 million, compared with €23.7 million from total new loans of €25.1 million in the previous month.

Net new housing loans dropped to €113.4 million, from total new loans of €155.7 million, compared with €117.5 million from total new loans of €158.7 million a month earlier.

Net new loans to non-financial corporations of up to €1 million decreased to €48.3 million from total new loans of €59.6 million, compared with €50.8 million from total new loans of €68.3 million in October 2025.

Net new loans to non-financial corporations exceeding €1 million fell sharply to €69.6 million from total new loans of €320.8 million, compared with €232.0 million from total new loans of €359.6 million in the previous month.

The Central Bank said interest rates on outstanding loan balances in Cyprus are close to the euro area median, with the margin at 0.0 per cent for households and narrowing to 0.4 per cent for non-financial corporations.

It added that interest rates on new loans in Cyprus are also comparable with the euro area median.

Specifically, the margin of the weighted average interest rate for new housing loans to households stood at minus 0.4 per cent, meaning it was lower than the euro area median.

For non-financial corporations, the corresponding margin for new loans reached 0.8 per cent.

In contrast, the Central Bank said deposit interest rates in Cyprus remain an outlier, standing at the lowest level in the euro area.

This was attributed to the high liquidity of Cypriot banks, which ranks among the highest in the euro area.

By way of indication, the Liquidity Coverage Ratio in Cyprus stood at 319 per cent in November 2025, compared with a median of 191 per cent and an average of 161 per cent in the European Union in September 2025.

The Central Bank also pointed to the small scale of Cyprus’ banking market as a factor influencing deposit rates.

It concluded that, similar to existing deposits, interest rates on new deposits also remain at the lowest level in the euro area for the same reasons.