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Increase in lending rates and a drop in new loans

01/09/2022 13:11

An increase in lending rates and a drop in new loans was recorded in July, according to data published on Thursday by the Central Bank of Cyprus. The statistics are included in the August 2022 edition of "Monetary and Financial Statistics".

The interest rate on loans for house purchase increased to 2.55%, compared with 2.32% in June. Respectively, the interest rate on consumer credit rose to 3.27%, compared with 2.89% in the previous month, while the rate on loans to non-financial corporations for amounts up to €1 million increased to 3.51%, compared with 3.36% in June. The interest rate on loans to non-financial corporations for amounts over €1 million registered an increase to 3.04%, compared with 2.89% in the previous month.

For deposits, the interest rate on deposits from households with an agreed maturity of up to one year remained unchanged at 0.05%, compared with the previous month, while the corresponding interest rate on deposits from non-financial corporations registered an increase to 0.07%, compared with 0.03% in June.

According to CBC, total new loans recorded a decrease to €302.3 million in July 2022, compared to €436.8 million in the previous month.

New loans for house purchase recorded a decrease to €83.2 million, compared with €103.8 million, while new loans for consumption decreased to €14.6 million, compared with €17.2 million in the previous month. New loans to non-financial corporations for amounts up to €1 million fell to €41.3 million, compared with €50.3 million in June and new loans to non-financial corporations for amounts over €1 million registered a decrease to €153.2 million, compared with €256.5 million in the previous month.