04/04/2011 08:49
The cost of borrowing for the businesses hit a record high in 2011 (last seen in July 2009), while the households continue to borrow with one of the highest interest rates in the euro area.
The new figures released by the European Central Bank on Friday show the gradual increase in the lending rates and give notice of the changes in the interest rate environment to the burden of the businesses and households.
The anticipated increase in the euro interest rate on Thursday by 25 base points is already apparent in the ECB data since the domestic banks follow a stricter credit policy in the past few months in view of the upcoming changes in the interest rate environment.
The biggest burden of the stricter lending terms concerns the businesses, which already borrow with more unfavourable terms than those in rest EU27.
The interest rates for the business loans in Cyprus hit a record high in February.
The average interest rate for the new business loans on he island stood at 6.25% from 6.21% in January and 5.83% in February 2010.
An increase in the cost of borrowing is observed in Greece too. The interest rates paid by the Greek companies reached 5.38% against 5.31% in January.
In the euro area, the interest rate for the business loans stood at 3.51% against 3.47% in January 2011.
As for those of the housing loans in Cyprus, they reached 4.88% from 4.91% in January and 4.49% in February 2010.
In the euro area, the interest rate of the housing loans rose to 3.90% from 3.83%.
The deposit interest rates show signs of stabilization to high levels. The war for the attraction of new deposits among the commercial banks cannot be yet spotted in the figures showing that the interest rates of the new deposits went slightly up to 4.02% from 4.01% in January and 4% in February 2010.
In the eurozone, the average deposit rates for bills of up to one year fell to 2.36% from 2.38%.
The new figures released by the European Central Bank on Friday show the gradual increase in the lending rates and give notice of the changes in the interest rate environment to the burden of the businesses and households.
The anticipated increase in the euro interest rate on Thursday by 25 base points is already apparent in the ECB data since the domestic banks follow a stricter credit policy in the past few months in view of the upcoming changes in the interest rate environment. The biggest burden of the stricter lending terms concerns the businesses, which already borrow with more unfavourable terms than those in rest EU27.
The interest rates for the business loans in Cyprus hit a record high in February.
The average interest rate for the new business loans on he island stood at 6.25% from 6.21% in January and 5.83% in February 2010. An increase in the cost of borrowing is observed in Greece too. The interest rates paid by the Greek companies reached 5.38% against 5.31% in January.
In the euro area, the interest rate for the business loans stood at 3.51% against 3.47% in January 2011.
As for those of the housing loans in Cyprus, they reached 4.88% from 4.91% in January and 4.49% in February 2010.
In the euro area, the interest rate of the housing loans rose to 3.90% from 3.83%.
The deposit interest rates show signs of stabilization to high levels. The war for the attraction of new deposits among the commercial banks cannot be yet spotted in the figures showing that the interest rates of the new deposits went slightly up to 4.02% from 4.01% in January and 4% in February 2010.
In the eurozone, the average deposit rates for bills of up to one year fell to 2.36% from 2.38%.
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