New business loans in Cyprus recorded a 25.4% drop in July from June while consumer loans and home mortgages increased, according to Central Bank data.
According to the official data, in July total new loans recorded an €82 600 000 drop to €241 200 000 compared to €323 700 000 in the previous month with the pandemic seen as a determining factor.
Consumer loans rose 14% to €16 100 000 from €14 000 000 in June while new housing loans also recorded a modest 4.7% increase going up to €97 800 000, compared to €93 400 000 in June.
On the contrary, new loans to non-financial corporations for amounts of up to €1 000 000 fell to €33 500 000 from €37 500 000 in the previous month.
At the same time, new loans to non-financial corporations for amounts over €1 000 000, fell to €74 600 000, compared to €161 300 000 in June.
According to the Central Bank of Cyprus, the interest rate on one-year term deposits for households recorded a drop and stood at 0.09% from 0.12% in June while the same rate for non-financial corporations remained unchanged in July at 0.03%.
The rate for consumer loans fell to 2.90% in July compared to 2.96% in June. The mortgage rate in July also fell to 2.05% compared to 2.10% in June.
However, the interest rate on loans to non-financial corporations for amounts of up to €1 000 000 went up to 3.20% compared to 3.16% in the previous month while the interest rate to non-financial corporations for over €1 000 000 reached 3.05% from 2.99% in June.