Central Bank Report Reveals Downturn in Cyprus' Loan and Deposit Sectors for January 2024

In January 2024, Cyprus experienced a notable downturn in both its loan and deposit sectors, as per a report released by the Central Bank of Cyprus (CBC) on Tuesday. The figures revealed a €122.9 million reduction in total loans and a €366.0 million decline in total deposits compared to the preceding month of December 2023.

Total loans in January 2024 dwindled to €24.7 billion, with loans to residents of Cyprus witnessing a decrease of €44.8 million. This downturn marked a significant shift from the previous month, where total loans had seen a substantial increase of €284.2 million. Delving deeper, loans to households saw a slight uptick of €3.4 million, while loans to non-financial corporations experienced a decrease of €19.1 million. Loans to other domestic sectors collectively saw a notable decline of €29.1 million.

Turning to the deposit sector, January 2024 saw a net decrease of €366 million, contrasting sharply with the net increase of €346.0 million recorded in December 2023. Deposits from residents of Cyprus notably contracted by €273.1 million. However, despite the decline, the annual growth rate of total deposits reached 0.8 percent, indicating a modest improvement compared to the 0.4 percent growth observed in December 2023. The remaining total deposits in January 2024 stood at €51.9 billion.

Further analysis of deposit data revealed a mixed picture. Deposits from households experienced a moderate decrease of €28.9 million, while deposits from non-financial corporations saw a more substantial decline of €206.5 million. Similarly, deposits from other domestic sectors also witnessed a decrease, totaling €37.7 million.

The detailed breakdown provided by the Central Bank of Cyprus sheds light on the intricacies of the country's financial landscape in January 2024. While the declines in both loans and deposits suggest a period of economic adjustment, the modest uptick in the annual growth rate of total deposits offers a glimmer of optimism amidst the challenging economic conditions.

By fLEXI tEAM