On Wednesday, June 25, the Central Bank of Cyprus published its monthly report on the interest rates offered by local financial institutions for deposits and loans to the population of Cyprus.
There was a noticeable decline in both mortgage loans and term deposits for households in April 2025.
This trend reflects the overall easing of financial conditions in Cyprus and may be a positive sign for potential borrowers and the banking sector. The average interest rate on time deposits of up to one year decreased by 0.15 percentage points, dropping from 1.41% in March to 1.26% in April. This trend was observed in almost all banks operating on the island, including:
- National Bank of Greece — from 1.61% to 1.29%;
- Bank of Cyprus — from 0.93% to 0.86%;
- The Housing Finance Organization decreased from 1.31% to 1.17%.
- Eurobank decreased its rate from 1.88% to 1.65%.
- Societe Generale set the rate at 0.75%.
- Ancoria Bank — from 1.21% to 1.08%.
- Alpha Bank Cyprus — from 1.07% to 1.04%.
- Astrobank — from 0.92% to 0.90%;
- Cyprus Development Bank — lowered the rate from 1.30% to 1.11%.
- Hellenic Bank decreased its rate from 1.09% to 0.99%.
The average floating rate on loans for purchasing residential property in Cyprus decreased by 0.52 percentage points, from 4.23% in March to 3.71% in April 2025. This indicates a clear trend towards cheaper borrowing for the population.
The following table shows the dynamics by bank:
- Eurobank — from 4.58% to 3.92%;
- Ancoria Bank — from 3.71% to 3.33%;
- Hellenic Bank decreased from 2.50% to 2.48%.
- The Bank of Cyprus saw a decrease from 5.20% to 5.15%.
- Alpha Bank's interest rate remained at 2.41%.
- The Housing Finance Organization's rate decreased from 3.64% to 3.59%.
Astrobank was the only exception to the general trend, with the rate rising from 3.97% to 4.27%. This increase may be due to a revision of risk conditions or a revaluation of internal liquid resources.
The decline in interest rates in Cyprus reflects moderate monetary easing, possibly against the backdrop of a general trend toward weaker inflation and expectations of a rate cut by the European Central Bank.
For the Cypriot real estate market, this could stimulate home purchases and new construction projects. However, lower deposit yields may prompt citizens to seek more profitable investment alternatives, such as bonds, real estate, or the stock market.
If the current trend continues, we can expect an increase in mortgage applications and greater competition for customers in the banking sector in the coming months.
Much will depend, however, on further decisions by the European Central Bank, the level of inflation in Cyprus, and the sustainability of overall economic growth in the country.