Nicosia: Net new loans in Cyprus rose in October, driven by increased lending to businesses for amounts exceeding £1 million, according to data released on Wednesday by the Central Bank of Cyprus (CBC). Loans in this category also saw the largest drop in interest rates.
According to Cyprus News Agency, net new loans totaled £360 million in October, up from £286.3 million in September. However, total new loans, including renegotiations, fell to £533.8 million compared to £667.9 million in the previous month.
New consumer loans decreased to £21.3 million (£20.2 million net new loans), down from £30.2 million (£22.4 million net new loans) in September. This decline reflects a reduced demand for consumer lending during the period.
Housing loans also experienced a decline, with figures dropping to £115.7 million (£96.1 million net new loans) from £121.6 million (£96.5 million net new loans) in the previous month. This trend indicates a slowdown in the housing market or possible caution among borrowers.
Total l
oans to non-financial companies up to £1 million fell to £57.3 million (£41.8 million net) from £63.8 million (£41.2 million net). This suggests a decrease in smaller-scale borrowing by companies, possibly due to a shift in business strategies or market conditions.
Meanwhile, total loans to non-financial companies exceeding £1 million declined to £333.9 million (£201.8 million net) from £400 million (£108.2 million net) in September. Despite the decrease, the net increase in loans highlights a stronger borrowing demand among larger businesses, likely encouraged by lower interest rates.