Nicosia: Pure new loans in Cyprus saw a significant decrease to £256.3 million in November 2025, down from a total of £565.2 million, compared with £429.4 million from a total of £624.9 million in the previous month.
According to Cyprus News Agency, the Central Bank of Cyprus (CBC) released statistics highlighting the average interest rates applied by monetary financial institutions (MFIs) in Cyprus on deposits and loans of euro area residents in euro. The data, part of the December 2025 edition of Monetary and Financial Statistics, also details the volume of new euro-denominated loans to euro area residents for November 2025. Comparative data for the eurozone countries are available in the European Central Bank's Data Portal.
Deposit Rates
The interest rate on deposits from households with an agreed maturity of up to one year increased to 1.13%, from 1.07% in the previous month. Conversely, deposits from non-financial corporations saw a decrease in interest rate to 1.17%, compared to 1.23% the month before.
Lending Rates
Consumer credit interest rates rose to 6.95%, slightly up from 6.88% the previous month. Loans for house purchases saw an increase in interest rates to 3.86%, compared to 3.73%. The portfolio of loans for house purchases includes various types of loans, causing fluctuations in the weighted average interest rate due to their differing risks and interest rates. Meanwhile, loans to non-financial corporations for amounts up to £1 million held steady at 4.39%. However, loans over £1 million experienced a rise in interest rate to 4.50%, up from 3.69%, a change driven by the prevalence of higher-risk loans.
Amounts of Pure New Loans
Official data shows a decline in pure new loans across various sectors. Pure new loans for consumption fell to £20.4 million from a total of £23.4 million, compared to £23.7 million (from a total of £25.1 million) the previous month. Loans for house purchase decreased to £113.4 million from a total of £155.7 million, down from £117.5 million (from a total of £158.7 million) in the preceding month. Non-financial corporations experienced a drop in pure new loans for amounts up to £1 million, decreasing to £48.3 million from a total of £59.6 million, compared to £50.8 million (from a total of £68.3 million) in the prior month. For amounts over £1 million, there was a significant reduction to £69.6 million from a total of £320.8 million, compared with £232.0 million (from a total of £359.6 million).
Cyprus Interest Rates in a European Context
The interest rate level on outstanding loans in Cyprus aligns closely with the Eurozone median, with zero spread for households and a 0.4% spread for non-financial corporations. The interest rate level on new loans in Cyprus also compares to the Eurozone median, with a -0.4% spread for household loans for house purchase and a 0.8% spread for non-financial corporations.
Deposit Interest Rates
In contrast to loans, Cyprus's deposit interest rates on outstanding amounts are notably lower than the Eurozone average. This is attributed to the high excess liquidity of credit institutions in Cyprus, with the Liquidity Coverage Ratio standing at 319% in November 2025, compared to the European Union median of 191% and mean of 161% in September 2025. Similarly, interest rates on new deposits in Cyprus remain low for the same reasons, as noted by the CBC.