CYPRUS: Lending and deposit rates rise as new credit declines

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Interest rates for the majority of loans and deposits rose in February, according to data published by the Central Bank of Cyprus (CBC).


Rates for consumer credit rose to 3.37% in February from 2.83% the previous month, marking an increase of 54 basis points.

Mortgage rates for house purchases increased to 2.22% compared to 2.18% in January, whereas rates from corporate loans above €1 mln spiked 3.32% from 2.95% the previous month.

Rates charged by the commercial banks on corporate loans up to €1 mln declined to 3.37% in February from 3.58%.

The interest rate on deposits from households with an agreed maturity of up to one year increased to 0.38%, compared with 0.36% in the previous month, whereas corresponding interest rates on deposits from non-financial corporations rose to 0.36% from 0.34%.

Furthermore, the provision of total new credit decelerated for a second consecutive month.

Total new loans, comprising both new and renegotiated loans recorded a decrease to €2.44 bln in February, compared to €3 bln in the previous month.

New consumer credit declined to €10.9 mln from €11.1 mln in January and new loans for house purchase marginally increased to €74.4 mln from €73.6 mln

New loans to non-financial corporations for amounts up to €1 mln rose to €41.8 mln, compared with €33.8 mln in the previous month, while new credit to non-financial corporations fell to €104.9 mln from €163.7 mln.