Greek money flows to Cyprus slow down in May

 — Cyprus deposits up 11% at €1.7bln —

The flow of money from Greece to Cyprus slowed in May with the increase in deposits from other euro area residents at EUR 359 mln compared to an influx of EUR 576 mln in April and EUR 462 mln in March, according to the May Monetary Survey issued by the Central Bank of Cyprus.
Total deposits held at Cypriot banks showed a healthy growth in May, rising 11.4% year-on-year or by EUR 1.7 bln to a total of EUR 63.96 bln of which EUR 42 bln refer to deposits held by Cyprus residents, EUR 3.15 bln held by other euro area residents (namely Greeks) and EUR 18.7 bln held by rest of the world residents (namely Russians and citizens of Ukraine), according to a Financial Mirror analysis.
Since the Greek debt crisis started in November 2009, there has been an influx of EUR 2 bln to Cyprus, with the Greek banks with branches in Cyprus, Eurobank, Piraeus and National Bank of Greece the main beneficiaries following a decision by the major Cypriot banks like Bank of Cyprus, Marfin Popular Bank and Hellenic Bank not to encourage the outflow of money from Greece.

Loan growth at 11.2%
According to the May Monetary Survey, total loans to non-MFIs increased by 11.2% year-on-year to EUR 59.87 bln but compared to April, the increase amounted to EUR 400 mln only.
Until end of May, resident loans amounted to EUR 47.4 bln, the loans of other euro area residents at EUR 3 bln and those from the rest of the world at EUR 9.5 bln.
The Central Bank of Cyprus data revealed that the equivalent of EUR 8.5 bln of the loans were denominated in dollars and EUR 4.3 bln in Swiss franc, both of which have been advancing against the euro, thus adding to the woes of Cypriot borrowers who preferred to borrow in cheaper rate loans than euros.
Consumer lending declined further by EUR 3 mln, whilst housing loans advanced EUR 160 mln in May. Corporate lending showed a modest increase. Out of the total EUR 59.87 bln in loans outstanding end of May, a total of EUR 13.2 bln refer to housing loans.