The Central Bank presented a report on changes in interest rates on deposits and loans in Cyprus in August 2021.
The interest rate on term deposits up to one year for the population in the last month of the summer did not change and remained at the level of 0.07% compared to July 2021.
But the corresponding interest rate on deposits of non-financial corporations fell to a historically low level in the last 12 months and amounted to 0.05%, compared to 0.06% in the previous month.
Interest rates on loans
The interest rate on consumer loans in August 2021 also fell to a historically low level of 2.87%, compared to 3.03% in the previous month. The interest rate on home loans fell to 2.17% from 2.21% in the previous month. It is worth noting that this is one of the lowest rates since October 2019.
The interest rate on loans to non-financial corporations of up to 1 million euros rose to 3.33% from 3.30% in the previous month. Finally, the interest rate on loans to non-financial corporations over 1 million euros fell to 3.04% from 3.16% in the previous month.
As you may know, earlier the Central Bank of Cyprus published data on the number of loans issued in the country in August 2021.
The total volume of new loans fell to 278.4 million euros. This was due to a decrease in loans issued to enterprises by 183.4 million euros and mortgages - by 28.6 million euros.
According to the Central Bank of Cyprus, new consumer loans fell to €13.2 million from €16.0 million last month, while new home loans fell to €89.5 million from €118.1 million euros last month.
New loans to non-financial corporations worth up to €1 million fell to €44.1 million, down from €61.5 million in January 2021. New loans to non-financial corporations in excess of €1 million increased to €118.8 million from €302.2 million in the previous month.