New bank loans, mortgage rates rise

New loans approved by Cypriot banks rose by €217 million in September compared to August, driven upwards by corporate loans of over €1 mln, which rose by 127.6 mln.

Furthermore, interest rates for consumer credit rose to a 4-year high and mortgage rates and corporate loans for up to €1 million climbed to a 6-year-high in the context of the ECB’s monetary policy.

According to Central Bank of Cyprus data, total new lending in September was €478.3 mln from €261.3 mln in the previous month, up 83%.

Consumer credit amounted to €15.6 mln in September compared with €12.3 mln the month before, while loans for house purchases rose to €102.9 mln from €79.2 mln in August.

New lending to corporations under €1 mln rose to €54.1 mln in September from 30.7 mln the month before, whereas new corporate loans over €1 mln reached €295.9 mln from €132.3 mln.

Interest rates

Interest rates for households with an agreed maturity of up to one year amounted to 0.11% in September from 0.06% in the previous month, climbing to the highest level since July 2020.

Rates for deposits from non-financial corporations declined to 0.09% from 0.13% in September.

Interest rates for new consumer loans advanced to 3.59% in September from 3.36% in the previous month, the highest level since October 2018.

Mortgage interest rates rose to 3.06% in September from 2.56% in August, reaching the highest level since June 2016.

Interest rates for corporate loans up to €1 mln climbed to 4.13% in September from 3.85%, marking a new high level since August 2016.

According to the CBC, interest rates for new corporate loans over €1 mln rose to 3.69% in September from 3.69% the month before.