Total new bank loans in April declined compared with the previous month, mainly due to the reduction in demand for new corporate loans while new consumer credit increased.
According to the Central Bank of Cyprus (CBC) data, the mortgage rate for new loans on house purchases reached its highest level for two years, while interest on corporate loans up to €1 mln rose to a 13-month high.
The interest rate for bank deposits with a fixed term up to one year declined to a new historic low, the CBC said.
In April 2021, total new loans declined to €540 mln compared with €611.5 in March.
New consumer credit rose to €21.2 mln from €18.3 mln in March, while new lending for house purchases declined to €102.3 mln compared with €104.6 mln in the previous month.
New corporate loans up to €1 mln in April declined to €68.6 mln from €90.9 mln, while total new corporate loans over €1 mln declined to €325 mln in April compared with €376.8 mln in March.
The rate for one-year fixed-term deposits for households declined to 0.07%, a new historic low, from 0.08% in March.
The respective interest rate for deposits from non-financial corporations rose to 0.09% in April from 0,08% in the previous month.
The interest rate for consumer loans rose to 3.05% compared with 2.92% in March, while mortgage rates for housing loans increased to 2.18% in April from 2.17% in March, the highest level since April 2019.
Interest rates for corporate loans up to €1 mln rose to 3.35% in April from 3.34%, while interest rates for corporate loans over €1 mln declined to 3.27% from 3.37% in March.