In 2025, Cyprus recorded the highest volume of new loans in recent years. The total amount reached 4.937 billion euros compared with 3.834 billion euros in 2024, representing annual growth of 28.7%. These data confirm a noticeable revival of the credit market amid economic stabilization, reduced inflationary pressure, and the gradual adaptation of borrowers to high interest rate conditions.
Growth in household and business lending
Loans issued to households increased to 1.677 billion euros compared with 1.419 billion euros a year earlier, showing annual growth of 18.1%. Demand for mortgage products remained particularly strong, directly linked to continued interest in the residential real estate market and expectations of gradual monetary policy easing in the eurozone.
Corporate lending showed even more dynamic growth. The volume of new loans to businesses rose to 3.260 billion euros compared with 2.415 billion euros in 2024, representing an increase of 35%. This reflects growing investment activity by companies, including in the construction, tourism, energy, and services sectors.
Consumer and mortgage loans
Net new consumer loans to households from January to December 2025 totaled 262.5 million euros, increasing compared with 249.5 million euros during the same period in 2024. Despite growth, the pace in this segment remains more moderate, indicating cautious consumer behavior.
Housing purchase loans reached 1.338 billion euros compared with 1.0872 billion euros a year earlier. At the same time, the volume of other types of loans declined to 75.8 million euros from 82.4 million euros, indicating a shift in demand toward more targeted and secured borrowing.
Corporate loans: large amounts come to the forefront
In the business segment, net new loans up to 1 million euros increased to 597.5 million euros compared with 568 million euros in 2024. However, the largest contribution to overall growth came from large loans. Loans exceeding 1 million euros rose to 2.662 billion euros from 1.8474 billion euros a year earlier, indicating increased activity in major investment projects and corporate financial restructuring.
Large-scale reassessment and revision of loan terms
In 2025, the practice of revising lending terms expanded significantly. The volume of household loans undergoing restructuring increased to 767.1 million euros from 529.6 million euros in the previous year. At the same time, in the consumer loan segment the amount decreased to 20.5 million euros from 31.2 million euros, while mortgage loans showed a sharp increase to 676.5 million euros compared with 389.8 million euros in 2024. The volume of other loans decreased to 70 million euros from 108.7 million euros.
For businesses, the total volume of loans revised during the period from January to December 2025 increased to 2.6838 billion euros compared with 2.0095 billion euros a year earlier. For loans up to 1 million euros the figure rose to 279.5 million euros from 230.8 million euros, while loans exceeding 1 million euros showed particularly significant growth — from 1.7787 billion euros to 2.4043 billion euros.
December 2025: sharp surge in activity
In December 2025, net new loans increased significantly, reaching 625.0 million euros out of a total new loan volume of 986.9 million euros. For comparison, in the previous month this figure was 256.3 million euros out of a total of 565.2 million euros.
Net new consumer loans in December decreased to 17.2 million euros out of a total volume of 18.2 million euros, compared with 20.4 million euros out of 23.4 million euros a month earlier. At the same time, mortgage loans showed growth, reaching 135.4 million euros out of a total volume of 178.1 million euros, compared with 113.4 million euros and 155.7 million euros a month earlier.
Particularly strong dynamics were observed in the corporate segment. Net new loans to non-financial companies up to 1 million euros increased to 60.3 million euros out of a total volume of 92.5 million euros, compared with 48.3 million euros out of 59.6 million euros in the previous month. Loans to non-financial companies exceeding 1 million euros increased to 406.4 million euros out of a total volume of 685 million euros, representing a sharp jump compared with 69.6 million euros and 320.8 million euros a month earlier.
Experts note that such end-of-year indicators are linked both to the completion of major transactions and to the desire of banks and borrowers to secure financing conditions before possible changes in interest rate policy in 2026.