New bank loans plunge 50%

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New credit granted by Cypriot banks dropped by nearly 50% in April compared with the previous month, pushed downward by a big reduction in housing loans.

According to data published by the Central Bank of Cyprus, “fresh” credit in April reached €193.6 mln from €378 mln in March, marking a monthly drop of 49%.

The margin was narrower annually, with new loans dropping by 1.4% from April 2021.

All new loan categories fell compared with the previous month, with housing loans and loans over €1 mln, representing the largest category, also seeing reductions.

New consumer bank credit in April was €11.4 mln, compared with €12.3 mln in March, while housing loans dipped to €64.8 mln from €195.2 mln in March.

The drop may be attributed to the Easter holidays and the price hikes in raw materials, which pushed house prices upwards.

New April credit given up to €1 mln amounted to €44.4 mln from €68.3 mln in the previous month, while new loans over €1 mln declined to €66.9 mln compared with €95.4 mln in March.

Total restructured loans for which new contracts were signed was €71 mln in April compared with €128.7 mln in the previous month.