On Thursday 4th July the Central Bank of Cyprus published an update on the changes in interest rates on loans and deposits in Cyprus in May 2024.
Interest rates on loans
The interest rate on consumer loans rose to 6.49 per cent from 6.43 per cent in the previous month. The interest rate on loans for house purchase decreased to 4.53 percent from 4.7 percent in the previous month.
The rate for loans to non-financial corporations up to €1 million fell to 5.27% from 5.58% in April. Finally, the rate on loans to non-financial corporations over 1 million rose to 6.32 per cent from 5.8 per cent in the previous month.
The Central Bank said that despite a 0.52 per cent increase in the interest rate on loans to non-financial corporations over €1 million in May, there was a 10 per cent increase in lending in this category. This indicates a continued interest in borrowing by both local and foreign companies.
Interest rates on deposits
The interest rate on time deposits with a maturity of up to one year for households fell to 2.02% in May from 2.16% in the previous month. The corresponding rate on deposits of non-financial corporations increased to 2.29 per cent from 1.82 per cent in April 2024.
Recall that earlier the central bank published data on loans issued in May 2024. Their total volume reached the mark of 427.6 million euros.
At the same time, new consumer loans decreased to 21.2 million euro (of which 19.8 million euro were net new loans), mortgage loans - to 119.7 million euro, loans to non-financial companies up to 1 million euro - to 55.5 million euro, and loans to non-financial companies over 1 million euro, on the contrary, increased to 224 million euro.