New loans of €281,4 mln granted in October

New loans amounting to 281,4 million euro were granted in October 2020, recording a decrease of 34,2 million compared to the previous month, when they reached 315,6 million.

According to the Central Bank of Cyprus, the interest rate for the purchase of a house rose to the highest level in 18 months, while the interest rate for household deposits of up to one year fell to a historically low level.

The Central Bank of Cyprus released on Wednesday statistics on interest rates applied by monetary financial institutions in Cyprus on deposits and loans in euro, as well as data regarding volumes (amounts) of new euro denominated loans for the reference month of October 2020. It is noted that the data for the reference months December 2019 until June 2020 were revised in accordance with the audited financial statements of the MFIs. These statistics are included in the November 2020 edition of Monetary and Financial Statistics.

The statistics show that interest rate on deposits from households with an agreed maturity of up to one year recorded a marginal decrease to 0.09%, compared with 0.10% in the previous month, while the corresponding interest rate on deposits from non-financial corporations rose to 0.13%, compared with 0.05% in the previous month.

As regards lending rates, the interest rate on consumer credit increased to 3.12%, compared with 3.09% in the previous month.
The interest rate on loans for house purchase recorded a rise to 2.14%, compared with 2.12% in the previous month, while the interest rate on loans to non-financial corporations for amounts up to €1 million declined marginally to 3.16%, compared with 3.17% in the previous month.

Meanwhile, the interest rate on loans to non-financial corporations for amounts over €1 million registered a decrease to 2.90%, compared with 3.22% in the previous month.

Regarding new loans, total new loans recorded a decrease to €281.4 million in October 2020, compared with €315.6 million in the previous month. Specifically,  new loans for consumption decreased to €14.4 million, compared with €15.3 million in the previous month and new loans for house purchase recorded a decline to €83.9 million, compared with €97.2 million in the previous month.

In addition, new loans to non-financial corporations for amounts up to €1 million registered a decrease to €32.2 million, compared with €38.9 million in the previous month and new loans to non-financial corporations for amounts over €1 million fell to €137.2 million, compared with €151.1 million in the previous month.