02/04/2015 09:40
The deposit and lending rates in Cyprus are double than the entire eurozone’s despite a decline in February after Central Bank’s intervention.
As shown by data released by the European Central Bank, the difference between deposit rates in Cyprus and those of the eurozone stands at 127 basis points. At the same time, the difference in interest rates on business loans reaches 281 basis points and on mortgages 246 basis points.
According to new European Central Bank data, interest rates on new deposits in Cyprus fell in February 2015 to the lowest level since December 2013, to 2.30% from 2.67% in January and 2.35% in February 2014. However, despite the decline they are still the highest in the eurozone. The cost of raising deposits in the euro area fell to 1.03% from 1.04%.
In Greece the cost of raising deposits rose to 1.81% from 1.80% and is the fourth highest in the eurozone.
In Slovakia the deposit rates are at 1.83%, in France at 1.66% and in the Netherlands at 1.86%.
The lowest deposit rates are registered in Luxembourg (0.30%) and Lithuania (0.34%).
Business loan rates fall
In addition to the deposit rates, business rates dropped as well, however the gap with the corresponding rates in the euro area is great.
The average interest rate on business loans in Cyprus decreased to 5.79% against 5.89% in the previous month and 6.18% in February 2014, remaining the highest in the eurozone. In the eurozone, the rate on business loans increased to 2.98% from 2.96%.
High business rates are also observed in Greece (5.11%), Malta (4.24%), Portugal (3.88%), Slovenia (3.52%) and Italy (3.45%), while the lowest are in Finland (1.82%).
Mortgages go up
Despite the reduction of deposit rates and interest rates for business loans, mortgage interest rates in Cyprus reached 5.05% in the second month of the year from 4.93% in January 2015 and 4.91% in February 2014. They are the highest interest rates throughout the euro area countries. In the eurozone, the mortgage rate fell to 2.59% from 2.70% the previous month.
Apart from Cyprus, mortgage rates are high in Portugal (3.77%), Ireland (3.60%), Latvia (3.45%), Slovakia (3.29%), France (3.20%), Netherlands (3.19%), Italy (3.01%) and Slovenia (2.96%).
The lowest are registered in Finland (1.44%).
As shown by data released by the European Central Bank, the difference between deposit rates in Cyprus and those of the eurozone stands at 127 basis points. At the same time, the difference in interest rates on business loans reaches 281 basis points and on mortgages 246 basis points.
According to new European Central Bank data, interest rates on new deposits in Cyprus fell in February 2015 to the lowest level since December 2013, to 2.30% from 2.67% in January and 2.35% in February 2014. However, despite the decline they are still the highest in the eurozone. The cost of raising deposits in the euro area fell to 1.03% from 1.04%.In Greece the cost of raising deposits rose to 1.81% from 1.80% and is the fourth highest in the eurozone.
In Slovakia the deposit rates are at 1.83%, in France at 1.66% and in the Netherlands at 1.86%.
The lowest deposit rates are registered in Luxembourg (0.30%) and Lithuania (0.34%).
Business loan rates fall
In addition to the deposit rates, business rates dropped as well, however the gap with the corresponding rates in the euro area is great.
The average interest rate on business loans in Cyprus decreased to 5.79% against 5.89% in the previous month and 6.18% in February 2014, remaining the highest in the eurozone. In the eurozone, the rate on business loans increased to 2.98% from 2.96%.
High business rates are also observed in Greece (5.11%), Malta (4.24%), Portugal (3.88%), Slovenia (3.52%) and Italy (3.45%), while the lowest are in Finland (1.82%).Mortgages go up
Despite the reduction of deposit rates and interest rates for business loans, mortgage interest rates in Cyprus reached 5.05% in the second month of the year from 4.93% in January 2015 and 4.91% in February 2014. They are the highest interest rates throughout the euro area countries. In the eurozone, the mortgage rate fell to 2.59% from 2.70% the previous month.
Apart from Cyprus, mortgage rates are high in Portugal (3.77%), Ireland (3.60%), Latvia (3.45%), Slovakia (3.29%), France (3.20%), Netherlands (3.19%), Italy (3.01%) and Slovenia (2.96%).
The lowest are registered in Finland (1.44%).
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