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Interest rates falling

08/01/2016 13:42
Lending rates are on a downward trend in Cyprus but still remain at high levels while deposit rates are stabilizing, as new figures released by the European Central Bank show.

Following the Central Bank’s intervention in February 2015, interest rates in Cyprus continue to decline, albeit at a slow pace.

According to new data released today by the European Central Bank, the average rate on new business loans in Cyprus declined to 4.82% in November 2015 from 4.89% in October and 5.83% in November 2014. Compared to February 2015 a decrease of 97 basis points has been recorded.

Business loan rates are also high in Greece (4.94%) while the lowest interest rates are recorded in Finland (1.66%) and Luxembourg (1.82%).

In the eurozone, the interest rate on business loans fell to 2.67% from 2.68% in October.

As regards interest rates on new housing loans in Cyprus, they declined to 3.90% in November from 3.98% in October 2015 and 4.74% in November 2014. The decrease compared to last February, rose to 115 basis points.

In Greece, lending rates for housing loans stood at 2.93%.

In the eurozone, the rate for housing loans rose to 2.62% from 2.58% in the previous month.

The interest rate on new deposits in Cyprus, stood at 1.51% from 1.53% in October and 2.59% in November 2014. This is the second highest rate in the euro zone after the Netherlands. Since February, a decrease of 79 basis points has been recorded.

In the eurozone, the cost of raising deposits stood at 0.65% from 0.66%.

The lowest deposit rates were recorded in Lithuania (0.13%), Latvia (0.11%) and Estonia (0.22%).