Nicosia: In May 2025, the financial landscape in Cyprus experienced notable shifts in interest rates, as reported by the Central Bank of Cyprus (CBC).
According to Cyprus News Agency, the interest rate on consumer credit decreased to 6.77%, down from 7.06% in the previous month. Conversely, the interest rate for house purchase loans saw a slight increase to 3.81% from 3.78% in April.
The data released by the CBC highlighted variations in the average interest rates applied by monetary financial institutions (MFIs) in Cyprus. The statistics also revealed that pure new loans declined to £297.8 million in May from a total of £714.4 million, compared to £324.7 million from a total of £682.2 million in April.
Further insights from the CBC indicated a decrease in interest rates on deposits for both households and non-financial corporations. The interest rate on household deposits with an agreed maturity of up to one year fell to 1.16% from 1.26%, while the rate for non-financial corporations decreased to 1.18% f
rom 1.37% in the previous month.
Regarding lending rates, while consumer credit saw a decline, loans for house purchases experienced a minor increase. The CBC noted that the composition of housing loan portfolios influences the weighted average interest rate, independent of MFIs’ rate adjustments. In addition, the interest rate on loans to non-financial corporations for amounts up to £1 million slightly increased to 4.67%, while loans for amounts over £1 million rose to 4.65%.
The CBC also compared Cyprus’ interest rate levels with those of other euro area countries, noting that Cyprus’ rates are close to the eurozone median. Specifically, in May 2025, the interest rate on outstanding loans to households in Cyprus stood at 4.16%, compared to 4.01% in the eurozone. For non-financial corporations, the rate was 4.46% in Cyprus versus 4.05% in the eurozone.
In terms of new loan categories, consumer loans increased to £23.5 million, and house purchase loans rose to £123.9 million. However, new loans to non-fina
ncial corporations for amounts over £1 million decreased significantly to £82.6 million from £159.2 million in April.