02/12/2011 12:09
The cost of borrowing for the businesses gets higher and higher, according to European Central Bank data released on Friday.
The Cypriot businessmen borrow with the highest cost in the euro area and the trend is upward at the same time that the liquidity in the market is running out.
The interest rates of the new business loans in Cyprus climbed to a record high in October, last seen in October 2008, right after the collapse of Lehman Brothers.
They reached 6.78% from 6.69% in September and 6.11% in October 2010.
In Greece, the interest rates for the new business loans stood at 6.19%, that is, 59 points lower than in Cyprus.
In the euro area, the interest rate for the business loans reached 3.87% against 3.85% in September 2011.
The interest rates of the housing loans are high as well. The banks maintain their interest rate margins despite ECB’s remarks for a change of the interest rate environment.
The interest rates of the housing loans stood at 5.61% from 5.67% in September and 4.71% in October 2010.
In the euro area, they fell to 3.95% from 4.02%.
In Greece, the new housing loans are allocated with an interest rate of 4.74% and in Portugal with 5.25%.
A slight increase has been also observed in the deposit rates.
Specifically, the rates for new deposits in Cyprus stood at 4.15% from 4.14% in September and 3.96% in October 2010.
In Greece, the cost of absorbance of deposits reached 4.49% against 4.36% in September and is the highest in the euro area.
In the euro area, the average deposit rates for bills of up to one year stood at 2.88% from 2.73%.
The Cypriot businessmen borrow with the highest cost in the euro area and the trend is upward at the same time that the liquidity in the market is running out.
The interest rates of the new business loans in Cyprus climbed to a record high in October, last seen in October 2008, right after the collapse of Lehman Brothers.They reached 6.78% from 6.69% in September and 6.11% in October 2010.
In Greece, the interest rates for the new business loans stood at 6.19%, that is, 59 points lower than in Cyprus.
In the euro area, the interest rate for the business loans reached 3.87% against 3.85% in September 2011.
The interest rates of the housing loans are high as well. The banks maintain their interest rate margins despite ECB’s remarks for a change of the interest rate environment.
The interest rates of the housing loans stood at 5.61% from 5.67% in September and 4.71% in October 2010. In the euro area, they fell to 3.95% from 4.02%.
In Greece, the new housing loans are allocated with an interest rate of 4.74% and in Portugal with 5.25%.
A slight increase has been also observed in the deposit rates.
Specifically, the rates for new deposits in Cyprus stood at 4.15% from 4.14% in September and 3.96% in October 2010.
In Greece, the cost of absorbance of deposits reached 4.49% against 4.36% in September and is the highest in the euro area.
In the euro area, the average deposit rates for bills of up to one year stood at 2.88% from 2.73%.
Related Articles
