Cyprus Central Bank's Quarterly Report Reveals Fluctuations in Interest Rates and Loan Activity

The Central Bank of Cyprus (CBC) recently unveiled its quarterly report, revealing notable fluctuations in interest rates on various financial instruments. Household deposits with a maturity of up to one year experienced an increase, reaching 2.29%, up from 2.01% in the previous month. Concurrently, the interest rate on deposits from non-financial corporations saw a slight decline, settling at 2.19% compared to the prior month's 2.29%.

In the realm of consumer credit, there was a noteworthy decrease in the interest rate, which now stands at 5.88%, down from 6.26% in the preceding month. Conversely, the interest rate on loans for house purchases exhibited an uptick, reaching 5.16%, up from 5.04% in the previous month.

Examining loans to non-financial corporations, the interest rate for amounts up to €1 million decreased to 5.62%, down from 6% in the previous month. However, loans exceeding €1 million experienced an increase, with the interest rate rising to 5.73% from the prior month's 5.59%.

The report also delves into the volume of new loans in December 2023, amounting to €725.4 million, reflecting a decrease from the previous month's figure of €743.7 million. Notably, new consumer loans witnessed a 26% decline, totaling €17.6 million, compared to €23.8 million in the prior month. Loans for house purchases also decreased by 32% to €161.4 million, down from €237.7 million in the previous month. New loans to non-financial corporations for amounts up to €1 million decreased to €85 million, down from the prior month's €91.5 million, while loans exceeding €1 million saw an increase to €435.6 million from €381.9 million in the previous month.

The CBC's report provides insights into the dynamic landscape of interest rates and loan activity, offering a comprehensive overview of the financial environment in Cyprus.

By fLEXI tEAM