06/05/2011 11:56
Lending rates in Cyprus in March 2011 hit a record high last seen in 2009, boosting the challenges that the Cyprus economy faces and making the recovery from the financial crisis more difficult.
The European Central Bank data released today reflect the changes in the interest rate environment.
The figures show that the lending rates had started to increase even before the interest rate increase by the ECB on April 13.
The changes in the interest rate environment have affected the businessmen, who borrow with the highest rate in Europe.
Specifically, the interest rates for business loans in Cyprus hit a record high in March, last seen in July 2009.
The average rate for the business loans in Cyprus stood at 6.27% from 6.25% in February and 5.81% in March 2010.
An increase in the cost of borrowing for the businesses was observed in Greece too. The rates paid by the Greek companies reached 5.50% against 5.38% in February.
In the euro area, the interest rate for the business loans stood at 3.55 against 3.51% in February 2011.
The interest rates of the housing loans recorded a sharp increase too. For the first time since October 2009 they exceeded 5%, reaching 5.04% from 4.88% in February and 4.33% in March 2010.
On the other hand, the housing loans rate in the euro area rose to 3.96% from 3.90%.
The housing rates are the second highest after those of Slovakia and the business ones the highest in the euro area.
The deposit rates, on the contrary, shows signs of stabilization to high levels.
The war for the attraction of new deposits among the commercial banks is not apparent in the figures, which show that the interest rates of the new deposits slipped to 4% from 4.2% in February and 3.95% in March 2010.
In the euro area, the average deposit rates for bills of up to one year fell to 2.34% from 2.36%.
The Cypriot deposit rates are also the highest in the euro area.
The European Central Bank data released today reflect the changes in the interest rate environment.
The figures show that the lending rates had started to increase even before the interest rate increase by the ECB on April 13.
The changes in the interest rate environment have affected the businessmen, who borrow with the highest rate in Europe.
Specifically, the interest rates for business loans in Cyprus hit a record high in March, last seen in July 2009.
The average rate for the business loans in Cyprus stood at 6.27% from 6.25% in February and 5.81% in March 2010.
An increase in the cost of borrowing for the businesses was observed in Greece too. The rates paid by the Greek companies reached 5.50% against 5.38% in February.
In the euro area, the interest rate for the business loans stood at 3.55 against 3.51% in February 2011.
The interest rates of the housing loans recorded a sharp increase too. For the first time since October 2009 they exceeded 5%, reaching 5.04% from 4.88% in February and 4.33% in March 2010.
On the other hand, the housing loans rate in the euro area rose to 3.96% from 3.90%.
The housing rates are the second highest after those of Slovakia and the business ones the highest in the euro area.
The deposit rates, on the contrary, shows signs of stabilization to high levels.
The war for the attraction of new deposits among the commercial banks is not apparent in the figures, which show that the interest rates of the new deposits slipped to 4% from 4.2% in February and 3.95% in March 2010.
In the euro area, the average deposit rates for bills of up to one year fell to 2.34% from 2.36%.
The Cypriot deposit rates are also the highest in the euro area.
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