New bank loans decline

Total new loans decreased to €473.9 mln in April, compared with €922.5 mln in the previous month, as the credit squeeze tightens, the Central Bank of Cyprus said.

Regarding deposit rates, it said the interest rate for households with an agreed maturity of up to one year decreased to 0.41%, compared with 0.47% in the previous month.

Cyprus has among the lowest savings rates in the European Union.

The corresponding interest rate on deposits from non-financial corporations decreased to 0.73%, compared with 1.12% in the previous month.

Regarding lending rates, the interest rate on consumer credit decreased to 4.85% from 5.05% in March, while the mortgage interest rate dipped to 4.45% from 4.67%.

The interest rate on loans to non-financial corporations for up to €1 mln decreased to 5.31% from 5.60% in the previous month, and the interest rate on loans to non-financial corporations for over €1 mln increased to 5.41% from 5.29%.

Total new loans decreased to €473.9 mln in April from €922.5 million in March.

New loans for consumption decreased to €18 mln, compared with €30.7 mln in the previous month, and new loans for house purchases declined to €115.4 mln from €199.5 mln.

The CBC said new loans to non-financial corporations for amounts up to €1 mln decreased to €60.1 mln from €109 mln, and new loans to non-financial corporations for over €1 mln fell to €269.3 mln, compared with €571.2 mln in March.