Advances up 2.6% in first half

Total advances by all banks increased by 2.6% year-on-year or by CYP 247.5 mln to CYP 9.55 bln in June 2005 from CYP 9.30 bln a year ago in the same period with the bulk of the increase, or CYP 152 mln due to the increase in personal loans.

According to figures released by the Central Bank, personal and professional loans were up 3.6% y/y to CYP 4.38 bln in June 2005. Some CYP 500 mln of the total loans were made to non-residents, the bulk of which in foreign currency.

The Central Bank figures also showed a steady increase in foreign currency loans by residents, with the total now at the equivalent of CYP 1 bln, up CYP 113 mln since the start of the year as an increasing number of Cypriots shift to borrowing in euros, Swiss francs and Japanese yen to lower their borrowing costs.