Cyprus loan growth at 31.9% in March ‘08

Despite efforts by the Central Bank to contain and limit the rate of growth of loans in Cyprus, the rate of loan growth to non-monetary financial institutions (MFIs) in March 2008 reached 31.9% Year-on-Year as total loans reached a new record of EUR 43.32 bln. This compares to EUR 32.8 bln loans given in March 2007 and EUR 42.5 bln in February 2008 according to the March Monetary Survey of the Central Bank of Cyprus.
Total loans to domestic residents reached EUR 35.6bln (+24.1% yoy and +2.2% mom), whilst loans to other euro area residents reached EUR 1.0bln, recording an increase of 57.5% yoy and 0.6% mom.
Housing loans reached EUR 8.6 bln in March 2008, up 37.75% YoY compared to EUR 6.2 bln in March 2007 and up 2.2% compared to EUR 8.4 bln housing loans in February 2008.
Consumer credit loans amounted to EUR 3.3 bln, up 17% YoY while other lending amounted to EUR 6.74 bln, up 10.5% YoY.

Deposit growth at 17.3%
Total deposits of the non-monetary financial institutions (MFIs) in March 2008 amounted to EUR 51.74 bln, registering a 17.3% Year-on-Year increase compared to EUR 44.11 bln in March 2007 and marginally up by 0.4% compared to EUR 51.5 bln in February 2008.
Domestic residents deposits amounted to EUR 32.3bln, up by 14.7% yoy (62.5% of total), whilst deposits from foreign residents reached EUR 19.4bln (+25.1% yoy, 37.4% of total).
December 2007 was the peak month in terms of total deposits as the figure reached EUR 52.5 bln, of which EUR 32.29 bln were placed by residents and EUR 20.21 bln by non-residents. Since then, deposits are sliding lower.