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New credit decline by 42% in January 2021

03/03/2021 12:48

Total new loans (including new credit and restructured loans) declined by 42% to €208 million in January 2021 compared to €357.4 million in December 2020, according to data released by the Central Bank of Cyprus.

According to CBC data, the interest rate concerning consumer credit rose to the highest level of the last two years, whereas the interest rate for non-financial corporations up to €1 million rose to a twelve-month high. Furthermore, the interest rate for one-year deposits remained at historic low levels.

New total consumer credit January decreased to €11.6 million, compared with €20.3 million in the previous month, new loans for house purchase recorded a decline to €76.1 million, compared with €111.0 million in December 2020.

According to the CBC, new loans to non-financial corporations for amounts up to €1 million registered a decrease to €49.4 million, compared with €54.6 million in December 2020, whereas new loans to non-financial corporations for amounts over €1 million fell to €61.7 million in January 2021, compared with €158.2 million in the previous month.

Concerning lending rates, the CBC said the interest rate on consumer credit increased to 3,25%, compared with 2.99% in the previous month, while the interest rate on loans for house purchase recorded a decline to 2.12%, compared with 2.16% in December 2020.

The interest rate on loans to non-financial corporations for amounts up to €1 million registered an increase to 3.30% in January 2021, compared with 3.13% in the previous month, while the interest rate on loans to non-financial corporations for amounts over €1 million fell to 3.11%, compared with 3.26% in the previous month.