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ECB: Cyprus records the highest interest rates in Eurozone

31 July, 2014

Cyprus continued in June 2014 to have the highest interest rates in the Eurozone on new loans for businesses and housing, despite the downward trend recorded in recent months, according to data released Thursday by the European Central Bank (ECB) and the Central Bank of Cyprus (CBC).

However, most categories of lending rates to households fell, according to the CBC, with the interest rate on consumer loans falling to 5.74%, compared with 6.06% in the previous month. This is the lowest level since 2009, according to data available from CBC.

In contrast, the interest rate on loans for house purchase increased to 4,40% compared with 4,37% the previous month and is still the highest among the countries of the Eurozone. The second highest rate loan for house purchase in the euro area was recorded in Slovakia with 3.36%, according to ECB data, and the lowest in Finland with 1.83%.

The main categories of interest rates on buissiness loans also registered decreases. The interest rate on loans for amounts over €1.00 million dropped to 5,50% compared with 5,55% the previous month, but are still the highest among the countries of the Eurozone.

The second highest rate was recorded in Greece at 4.56% and the lowest in Luxembourg with 1.42%.

The highest in the Eurozone is also the interest rate for business loans for amounts below € 1,00 million, which is at 6.02%, compared with 6.14% in the previous month.

The interest rate on deposits from households with an agreed maturity of up to one year rose to 2,56%, compared with 2,49% the previous month.

This is the highest deposit rate for households in the Eurozone, with the second highest rate in Greece with 2.36%.

In contrast, the corresponding interest rate for businesses decreased to 2,39% compared with 2,50% the previous month and is the second highest rate in the Eurozone after the deposit rate 2.40% in Greece.