Cyprus banks issued 65.4% more loans in December compared to the previous month while lending and deposit rates dropped further. According to figures published by the Central Bank of Cyprus on Friday, total new loans rose to €407.6 mln, compared to €246.4 mln in the previous month.
Loans to non-financial corporations for over €1 mln recorded the largest increase, to €216.9 mln, compared to € 91.0 mln in the previous month. Of these, €195.6 mln were new loans and €21.3 mln are restructured loans.
.jpg)
New housing loans rose to €101.6 mln, compared with €82.8 mln the previous month. Of these, €96.3 mln concerned new loans and €5.3 mln were restructured.
New loans to non-financial corporations for amounts up to €1 mln recorded an increase to €56.1 mln, compared to €1.8 mln in the previous month, of which €53.5 mln were new loans.
New loans for consumption decreased to €12.8 mln, compared to €13.3 mln in the previous month.
Meanwhile, interest rate on consumer credit in December 2018 saw a decrease to 2.92%, compared with 3.49% in the previous month. Cyprus had the fourth lowest interest rate for consumer loans in the Eurozone after Luxembourg, Spain and Belgium, while the Eurozone average was 4.92%.
The interest rate on housing loans fell to 2.13%, compared to 2.29% in the previous month, while the Eurozone average stood at 1.61%.
The interest rate on loans to non-financial corporations for amounts up to €1 mln decreased to 3.41%, compared to 3.53% in November, while the Eurozone average was 1.97%.
The interest rate on loans to non-financial corporations for amounts over €1 mln rose to 3.40%, compared to 3.12% in the previous month, and is the third highest Eurozone interest rate in this category after Malta and Greece. The Eurozone average was 1.26%.
The interest rate on household deposits with an agreed maturity of up to one year dropped to 0.40%, compared with 0.54% in the previous month, while the Eurozone average was 0.31%.
The corresponding interest rate on non-financial corporations deposits recorded a marginal decrease to 0.45%, compared to 0.46% in the previous month and is the third highest in the Eurozone after Greece and Italy. The average Eurozone rate for this category was 0.06%.
