A spike in renegotiated corporate loans over €1 million pushed new loan contracts in March 2021 registering a 91% increase compared with February, data published by the Central Bank of Cyprus show.
Furthermore, pure new loans in the Cyprus banking system registered an increase of 23.8% in March compared with February amounting to €255 million.
According to the CBC, housing loans rose to €85.6 million in March, accounting for one third of pure new credit of the month. Housing loans are buoyed by a government scheme subsidizing new mortgage loans as part of measures to reduce the impact of the covid pandemic.
New credit to companies over €1 million amounted to €81.7 in March, while new corporate credit to companies up to €1 million reached €57, the CBC added.
Pure consumer credit in March amounted to €14.2 million while other pure loans reached €16.4 million.
Furthermore, total restructured loans in March amounted to €356.6 million with renegotiated corporate loans over €1 million amounting to €295 million accounting of 82% of total renegotiated loans.
Furthermore, renegotiated loans up to €1 million amounted to €34, Housing renegotiated loans rose to €19, while renegotiated consumer and other loans amounted to €4 million and €4.5 million respectively.
Moreover, according to the CBC deposit interest rates remained at historic low levels.
The interest rate on deposits from households with an agreed maturity of up to one year remained unchanged at 0.08% in March, while the corresponding interest rate on deposits from non-financial corporations registered a decline to 0.08%, compared with 0,13% in the previous month.
As far as lending rates are concerned, the interest rate on consumer credit decreased to 2.92%, compared with 3.11% in the previous month, the interest rate on loans for house purchase rose to 2.17%, in March compared with 2,15% in the previous month.
The interest rate on loans to non-financial corporations for amounts up to €1 million increased to 3.34%, compared with 3,19% in the previous month, while the interest rate on loans to non-financial corporations for amounts over €1 million registered a rise to 3.37%, compared with 2.48% in the previous month, the CBC added.