Nicosia: There is still a wide gap between deposit and lending interest rates in Cyprus compared to the eurozone ones. Lending rates in Cyprus are significantly higher than those in the eurozone, while deposit rates are lower, according to July data issued by the Central Bank of Cyprus (CBC).
According to Cyprus News Agency, the CBC published detailed interest rate data for deposits and loans for each credit institution with the aim of further enhancing transparency. The data reveals a distinct disparity in the rates offered in Cyprus compared to the eurozone, highlighting a financial landscape in need of scrutiny.
For new household term deposits of up to one year, the average rate across Cyprus is 1.08%, notably lower than the eurozone’s average of 1.72%. The highest rate in Cyprus is at Jordan Ahli Bank with 1.38%, while Societe Generale offers the lowest at 0.60%. Existing household term deposits with a maturity of up to two years show an average rate of 0.85% in Cyprus, again falling short of the eurozone’s 1.99%.
When examining new term deposits of non-financial companies with a maturity of up to one year, the average rate in Cyprus is 1.21%, compared to the eurozone’s 1.88%. Alpha Bank leads with 1.53%, while the HFC offers the lowest rate at 0.42%. Existing term deposits for non-financial companies with a maturity of up to two years have an average rate of 1.2% in Cyprus, whereas the eurozone benefits from a 2.11% rate.
In the realm of housing loans, new mortgage loan contracts in Cyprus average a 3.9% interest rate, although no comparative eurozone data is provided. The Bank of Cyprus charges the highest rate at 4.96%. Existing mortgage loans in Cyprus carry an average rate of 3.71%, contrasting with the eurozone’s lower rate of 2.37%.
For corporate loans, new loans to non-financial companies up to one million pounds carry an average interest rate of 4.46% in Cyprus. Banque SBA charges the highest rate at 6.56%. Loans exceeding one million pounds have an average rate of 4.02%, with Astrobank offering the highest rate at 6.63%. Existing corporate loans in Cyprus average a 4.23% rate, while the eurozone offers a more favorable 3.03%. Societe Generale holds the highest rate at 5.05%.
The data underscores a significant gap between the financial environments of Cyprus and the eurozone, emphasizing disparities that may influence economic decisions and strategies within the region.