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Interest rates declined in 2015

04/02/2016 13:02
Interest rates declined during 2015 but still remain at high levels compared to other European countries, as new figures released by the European Central Bank show.

Following the Central Bank’s intervention in February 2015, interest rates in Cyprus followed a downward course, albeit at a slow pace.

According to new data released today by the European Central Bank, the average rate on new business loans in Cyprus declined to 4,75% in December 2015 from 4,82% in November and 5,83% in December 2014. Compared to February 2015 a decrease of 105 basis points has been recorded.

Business loan rates are the second highest in Europe after those in Greece (4,9%) while the lowest interest rates are recorded in Finland (1,63%) and Luxembourg (1,78%).

In the eurozone, the interest rate on business loans fell to 2,65% from 2,67% in November.

As regards interest rates on new housing loans in Cyprus, they stood at 3,91% in December from 3,9% in November 2015 and 5,04% in December 2014. The decrease compared to last February is 114 basis points.

In Greece, lending rates for housing loans stood at 3,03%.

In the eurozone, the rate for housing loans fell to 2,55% from 2,62% in the previous month.

The interest rate on new deposits in Cyprus, stood at 1,54% from 1,51% in November and 2,63% in December 2014. This is the second highest rate in the euro zone after the Netherlands. Since February, a decrease of 76 basis points has been recorded.

In the eurozone, the cost of raising deposits stood at 0,65% as in the previous month.

The lowest deposit rates were recorded in Lithuania (0,14%) and Estonia (0,17%).