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Cyprus rates still the highest in eurozone

03/12/2014 13:50
The lending and deposit rates in Cyprus are still the highest in the euro area, intensifying pressures on the Central Bank of Cyprus to take necessary measures towards alleviating the situation.

The public interventions on the need to reduce the cost of money do not seem to be effective as, according to latest data available, the interest rates in Cyprus remain high.

According to new European Central Bank data, interest rates on new deposits in Cyprus reached 2.67% in October 2014 from 2.59% in September and 2.36% in October 2013.

They are the highest in the eurozone.

In Greece, the cost of deposits fell to 1.91% from 2.07% and it is the second highest in the eurozone.

In the Netherlands, the deposit rates stand at 1.75%, in France at 1.64% and in Portugal at 1.30%.

In the eurozone, the cost of deposits declined to 1.12% from 1.21%.

The lowest deposit rates are observed in Belgium (0.33%), Latvia (0.33%), Estonia (0.38%), Luxembourg (0.40%), Germany (0.51%) and Austria (0.53%).

Mortgage rates go up

The interest rates on mortgage loans have recorded an increase as well.

According to ECB data, mortgage rates in Cyprus rose to 5.05% in October 2014 from 4.89% in September and 5.10% in October 2013. These are the highest rates in the euro area.

Cyprus is followed by Portugal (3.77%), Malta (3.71%) and Slovakia (3.53%). The lowest mortgage rates are observed in Finland (1.83% - 2%) and Luxembourg (2.02%).

In the eurozone, the mortgage rate fell to 2.90% from 2.97%.

Business loans

Cyprus has also the highest interest rates on business loans.

The average interest rate on business loans fell to 5.78% against 5.83% in September and 6.32% in October 2013, however, they are still the highest in the eurozone.

Cyprus is followed by Greece (5.27%), Malta (4.30%) and Portugal (4.01%) while the lowest are registered in Finland (1.89%) and Luxembourg (2.08 %).

In the euro area, the interest rate on business loans dropped to 3.08% from 3.13%.