According to the latest data from the Central Bank of Cyprus (CBK), the volume of loans granted to large companies increased significantly in January and February, exceeding half a billion euros.
There was also strong growth in mortgage lending.
However, the total number of new loans continued to decline. According to the CBC, this trend is mainly due to rising interest rates on housing loans and deteriorating consumer confidence in banks.
In particular, the total volume of new loans granted by credit institutions to both private individuals and companies reached EUR 962.5 million in the first two months of 2025. This represents a decrease of 1.2% compared to the same period in 2024, when the figure was €973.7 million.
Interestingly, the largest volume of new loans in January-February 2025 came from loans to non-financial corporations of more than €1 million - €83.3 million (+3.19%) compared to €489.9 million last year. At the same time, loans to small enterprises (up to EUR 1 million) fell by almost 15%. In the first two months of 2025, 109 million euros were disbursed, compared to 127.8 million euros in the same period of the previous year.
Consumer loans showed a moderate decline of 4.3%. In January-February 2025, banks in Cyprus granted €47.7 million of loans in this category, compared with €49.9 million a year earlier.
In contrast, new mortgage loans increased by 7%. In January-February 2025, local banks granted €284.8 million in housing loans, compared with €266.1 million in the same period of 2024.
In particular, loans in the category 'Other loans to households' showed the fastest growth, increasing by 80 %. In the first two months of 2025, €29.2 million were disbursed in other loan categories, compared with €16.2 million a year earlier.