Nicosia: Both deposit and lending interest rates recorded a decrease in April, according to data published on Wednesday by the Central Bank of Cyprus. Total new loans recorded a decrease of £282 million compared to the previous month, mainly due to a drop in new loans to non-financial corporations for amounts over £1 million.
According to Cyprus News Agency, the interest rate on deposits from households with an agreed maturity of up to one year recorded a decrease to 1.26%, compared with 1.41% in the previous month. Meanwhile, the corresponding interest rate on deposits from non-financial corporations registered an increase to 1.37%, compared with 1.31% in the previous month.
The interest rate on consumer credit decreased to 7.06%, down from 7.40% in the previous month. For loans related to house purchases, the interest rate fell to 3.78%, compared with 4.56% in the preceding month. The Central Bank of Cyprus notes that the portfolio of loans for house purchase contains various types of loans, which bear different risk and interest rates. The composition of the housing loans portfolio varies from month to month, affecting the weighted average interest rate independently of the actual increases or decreases in the rates.
Additionally, the interest rate on loans to non-financial corporations for amounts up to £1 million decreased to 4.65%, down from 4.96% the previous month. Conversely, the interest rate on loans to non-financial corporations for amounts over £1 million saw an increase to 4.13%, compared with 3.87% in the previous month.
In terms of the amounts of new loans, total new loans decreased to £682.2 million in April 2025, compared with £964.2 million in the prior month. New loans for consumption fell to £21.8 million, of which £20.7 million were pure new loans, compared with £24.5 million the previous month, of which £22.8 million were pure new loans.
New loans for house purchases recorded a decrease to £161.8 million, with £98.2 million being pure new loans, compared with £188.2 million in the previous month, of which £103.8 million were pure new loans. New loans to non-financial corporations for amounts up to £1 million decreased to £68.5 million, with £37.9 million being pure new loans, compared with £82.4 million the previous month, of which £48.5 million were pure new loans.
Furthermore, new loans to non-financial corporations for amounts over £1 million registered a decrease to £414.2 million, with £159.2 million being pure new loans, in comparison to £661.9 million in the previous month, of which £483.1 million were pure new loans.