Nicosia: New loans in Cyprus recorded a notable decrease in October 2025, reaching £429.4 million, down from £624.9 million in the previous month, as per figures released by the Central Bank of Cyprus.
According to Cyprus News Agency, pure new loans for consumption rose to £23.7 million from £21.2 million in September. Meanwhile, loans for house purchases showed an increase, climbing to £117.5 million compared to £112.9 million the month before.
Conversely, loans to non-financial corporations experienced a decline. Loans for amounts up to £1 million fell to £50.8 million from £62.7 million, while loans exceeding £1 million decreased to £232.0 million from £246.7 million in September.
Interest rates on outstanding loans in Cyprus remain close to the Eurozone median, with spreads at zero for households and 0.4% for non-financial corporations. For new loans, the spread for household loans for house purchases is -0.3%, and 0.1% for non-financial corporations.
Interest rates on deposits in Cyprus are among the lowest in the Eurozone, attributed to high liquidity levels in Cypriot credit institutions. The Liquidity Coverage Ratio (LCR) in Cyprus stood at 329% in October, compared to the EU median of 183% in June.
Interest rates on deposits from households with up to one-year maturity decreased slightly to 1.07%, and for non-financial corporations, the rate marginally decreased to 1.23%. On the other hand, consumer credit interest rates increased to 6.88%, and loans for house purchase rose to 3.73%.
Interest rates on loans to non-financial corporations for amounts up to £1 million slightly increased to 4.39%, while loans for amounts over £1 million saw a decrease to 3.69%.