Between January and May of 2025, the net volume of new loans issued by Cypriot banks reached a record high for the past decade. According to the Central Bank of Cyprus's latest data, the total figure was €1.844 billion, 38.3% higher than in the same period of 2024 (€1.334 billion). This surpasses all previous figures for the first five months of each year since 2015, exceeding the previous record by €349 million.
Business lending
Loans to businesses contributed the most to growth. The volume of new corporate loans from January to May of 2025 was €1.191 billion, compared to €778 million the previous year, a 53% increase. Large business loans of over €1 million were particularly prevalent, indicating increased business and investment activity by companies in Cyprus.
Housing loans and loans to households
The net volume of new loans to individuals in the first five months of 2025 was €654 million, up 17.6% from €556 million in 2024. Housing loans accounted for the largest share, while consumer lending and other loans to households showed steady growth.
May indicators
In May 2025, the total volume of net new loans decreased slightly to €297.8 million, down from €324.7 million in April. Despite the overall decline, some categories showed positive dynamics.
- Consumer loans increased to €23.5 million, up from €20.7 million in April.
- Housing loans increased to €123.9 million, up from €98.2 million.
- Loans to businesses of up to €1 million increased from €37.9 million to €59.8 million.
Conversely, loans to companies exceeding €1 million decreased to €82.6 million (down from €159.2 million in April), partially offsetting the growth in other categories.
Loan restructuring
Another important trend was the increase in the volume of restructured loans. Households renegotiated loans worth €370.4 million, which is significantly more than the €232.2 million recorded during the same period last year. The majority of this amount was accounted for by housing loans, the volume of which increased to €334 million. Other household loans showed growth, while consumer loans declined from €13.4 million to €9.3 million in restructuring.
Businesses are also actively using restructuring as a debt management tool. From January to May 2025, the total volume of restructured corporate loans reached €1.101 billion, which is significantly higher than the €676.5 million recorded a year earlier. Notably, the volume of restructuring for loans over €1 million almost doubled, rising from €582.6 million to €976.8 million. For loans of up to €1 million, the figure was €125.1 million, exceeding last year's figure of €94 million.
Thus, the Cypriot banking sector is demonstrating steady growth, flexibility, and readiness to adapt to the needs of businesses and private customers alike. The record volume of new loans, active loan restructuring, and diversification across categories indicate the financial system's high degree of maturity and the country's growing economic potential.