On Monday, July 6, the Central Bank published a new report on loans in Cyprus from January to May 2021, as well as changes in interest rates.
According to data from the Central Bank, loans provided to the population in the first five months of the year showed great growth.
In particular, the amount of new loans issued to households for the period from January to May 2021 increased by 56.2% and reached €527 million. In comparison with the same period last year, this figure was equal to €338 million.
In turn, the amount of new business loans issued over the same period increased by 31.9%, to €535 million from €405 million compared to January-May 2020.
The total volume of loans provided by banks to individuals and companies, excluding restructuring, amounted to €1.062 billion. In comparison with the same period last year, this figure was equal to €743 million.
Overdue loans to households in the first five months of 2021 amounted to €129.3 million, and to businesses - €903 million.
Interest rates on loans
The interest rate on consumer loans in May 2021 fell to 2.88% from 3.05% in the previous month. The interest rate on home loans increased to 2.19% from 2.18% in the previous month. It should be noted that this is one of the highest rates since April 2019.
The interest rate on loans to non-financial corporations of up to €1 million fell to 3.22% from 3.35% of the previous month. Finally, the interest rate on loans to non-financial corporations over €1 million fell to 2.81% from 3.27% in the previous month.
The interest rate on term deposits up to one year for the population in May 2021 did not change and remained at the level of 0.07% compared to the previous month.
The corresponding interest rate on deposits of non-financial corporations fell to 0.04% from 0.09% in the previous month.
It is worth noting that the total amount of new loans issued in Cyprus decreased by 25% to €2.4 billion.