Bank deposits in Cyprus dropped in October 2020, following an increase in the previous four months, while loans recorded a rise after two consecutive months of decrease, due to an increase in business and housing loans, according to data released by the Central Bank of Cyprus.
The Central Bank of Cyprus released on Thursday the Monetary Financial Institutions (MFIs) Deposits and Loans Statistics for the reference month of October 2020, which are included in the November 2020 edition of Monetary and Financial Statistics.
According to the statistics, total deposits in October 2020 recorded a net decrease of €114,2 million, compared with a net increase of €36,2 million in September 2020. The outstanding amount of deposits reached €47,9 billion in October 2020.
The annual growth rate stood at -0,5%, compared with -0,6% in September 2020.
Business deposits recorded, for the sixth consecutive month, in October 2020 a net increase of € 19.4 million, while household deposits showed a net increase of € 21.2 million in October, after three consecutive months decrease.
The deposits of insurance companies and pension funds also recorded a net increase of € 10.4 million, after six consecutive months of decrease.
The deposits of the General Government showed a drop by € 49.6 million and of the other financial intermediaries by € 115.5 million.
Regarding loans, total loans in October 2020 recorded a net increase of €64,2 million, compared with a net decrease of €26,8 million in September 2020. The annual growth rate stood at -4,1%, compared with -4,6% in September 2020.
The outstanding amount of total loans reached €32,0 billion in October 2020.
The Central Bank notes that the suspension of instalments, according to the Decree for the suspension of loan instalments by the Minister of Finance, had an upward impact on the above changes in loans.
The suspension of instalments was related to loans from MFIs to households and non-financial corporations amounting to €10,4 billion.