According to new data published by the European Central Bank on Friday 1st November Cyprus is the fourth EU country whose residents make deposits at the lowest interest rates.
In particular, the average interest rate on deposits for up to one year for households in Cyprus is 1.98%.
The situation is worse in Slovenia (1.62%), Greece (1.86%) and Croatia (1.93%). Meanwhile, the average interest rate for household deposits in the euro area is 2.97%.
On the other hand, depositors in Estonia (3.57%), Italy (3.55%) and Belgium (3.5%) have the highest interest rates. The corresponding rate for deposits of non-financial corporations in Cyprus is 2.1% and for deposits of enterprises 3.28%.
The average interest rate on mortgages in Cyprus is now 4.53%. The corresponding rate in the euro area is 3.659%. In Greece, the average interest rate on housing loans is 3.83%.
Interest rates on loans to enterprises in Cyprus, at 6.5%, are the sixth highest in the euro area. Finally, the average interest rate for consumer loans in Cyprus is 6.0%. The highest rate is in Estonia, where it stands at 13.58%.
It should be recalled that Cyprus has long had the lowest deposit rates and the highest lending rates in the EU.
The island country has been a leader in these indicators for several years. Many businessmen operating in Cyprus realised that high interest rates on business loans were slowing down the development of their companies. On the other hand, the population was not in a hurry to open deposit accounts. However, this trend is gradually changing for the better.