Business loans drop 25%, mortgages increase 4.7%

New business loans in Cyprus recorded a 25.4% drop in July from June while consumer loans and home mortgages increased, according to Central Bank data.

According to the official data, in July total new loans recorded an €82.6 mln drop to €241.2 mln compared to €323.7 mln in the previous month with the pandemic seen as a determining factor.

Consumer loans rose 14% to €16.1 mln from €14 mln in June while new housing loans also recorded a modest 4.7% increase going up to €97.8 mln, compared to €93.4 mln in June.

On the contrary, new loans to non-financial corporations for amounts of up to €1 mln fell to €33.5 mln from €37.5 mln in the previous month.

At the same time, new loans to non-financial corporations for amounts over €1 mln, fell to €74.6 mln, compared to €161.3 mln in June.

According to the Central Bank of Cyprus, the interest rate on one-year term deposits for households recorded a drop and stood at 0.09% from 0.12% in June while the same rate for non-financial corporations remained unchanged in July at 0.03%.

The rate for consumer loans fell to 2.90% in July compared to 2.96% in June. The mortgage rate in July also fell to 2.05% compared to 2.10% in June.

However, the interest rate on loans to non-financial corporations for amounts of up to €1 mln went up to 3.20% compared to 3.16% in the previous month while the interest rate to non-financial corporations for over €1 mln reached 3.05% from 2.99% in June.