CYPRUS: Consumer spending slows as new loans drop by a quarter

Total new loans dropped 25.7% to €211 mln in August from €284.1 mln in the previous month as spending slowed, data released by the Central Bank of Cyprus showed on Thursday.

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 The Central Bank said that new loans for consumption fell 27% to €12.7 mln, compared with €17.4 mln in July, whereas new loans for house purchases were down 2.97% to €71.7 mln, from €73.9 mln.

New loans to non-financial corporations for amounts up to €1 million dipped 14% to €35.5 mln, from €41.3 mln in July, while new loans to non-financial corporations for amounts over €1 million recorded a 45.1% decline to €73.5 mln from €134.1 mln.

Deposit rates

The figures showed that the interest rate on deposits from households with an agreed maturity of up to one year were marginally down to 0.84%, from 0.85% in the previous month.

The corresponding interest rate on deposits from non-financial corporations rose to 0.62%, from 0.55% in July.

Lending rates

The interest rate on consumer credit increased to 3.84%, compared with 3.76% in the previous month, while the interest rate on loans for house purchase fell to 2.40%, from 2.47% in the seventh month of the year. 

The interest rate on loans to non-financial corporations for amounts up to €1 million dropped to 3.44%, compared with 3.61% in the previous month. The interest rate on loans to non-financial corporations for amounts over €1 million was down to 2.73%, compared with 3.52% in July.