Deposits rise for second consecutive month

Deposits in the Cypriot banking system registered a net increase for a second consecutive month in May amounting close to €49 billion.

According to data released by the Central Bank of Cyprus, loans declined for a second month in a row in May amounting to 31.3 billion while liquidity in the system stood at €17.4 billion.

Total deposits in May recorded a net (not including changes resulting from reclassifications, exchange rate and other adjustments) increase of €330.1 million, compared with a net increase of €233.1 million in April 2021. The annual growth rate stood at 3.1%, compared with 2.3% in April 2021, the CBC said, adding the total outstanding amount of deposits reached €48.7 billion in May 2021.

Total loans in May 2021 recorded a net decrease of €24.3 million, compared with a net decrease of  €76.2 million in April 2021.

The annual growth rate stood at 1.3%, compared with 1.6% in April 2021 with the total value of loans amounting to €313 billion.

The CBC said that the new payment holiday, according to the new Decree for the suspension of loan instalments by the Minister of Finance, issued in January 2021, had a minor upward impact on the above changes in loans, as the new suspension concerns corporate and household loans amounting to €56.9 million.