Total new loans up 65.4% in December while interest rates drop

Total new loans recorded an increase of 65.4% in December 2018 compared to the previous month, while lending and deposit rates fell further.

According to figures published by the Central Bank of Cyprus on Friday, total new loans rose to Euros 407.6 million, compared to Euros 246.4 million in the previous month.

Loans to non-financial corporations over Euros 1 million recorded the largest increase, to Euros 216.9 million, compared to Euros 91.0 million in the previous month. Of these Euros 195.6 million were pure new loans and Euros 21.3 loans that have been renegotiated.

New loans for house purchase rose to Euros 101.6 million, compared with Euros 82.8 million in the previous month. Of these Euros 96.3 million were pure new loans and Euros 5.3 renegotiated loans.

New loans to non-financial corporations for amounts up to Euros 1 million recorded an increase to Euros 56.1 million, compared to Euros 41.8 million in the previous month, of which Euros 53.5 million were pure new loans.

New loans for consumption decreased to Euros 12.8 million, compared with Euros 13.3 million in the previous month.

Lending rates fall in most categories

Interest rate on consumer credit in December 2018 registered a decrease to 2.92%, compared with 3.49% in the previous month,. Cyprus had the fourth lowest interest rate for consumer loans in the Eurozone after Luxembourg, Spain and Belgium, while Eurozone averages was 4.92%.

The interest rate on loans for house purchase fell to 2.13%, compared with 2.29% in the previous month, while Eurozone average was 1.61%.

The interest rate on loans to non-financial corporations for amounts up to Euros 1 million decreased to 3.41%, compared with 3.53% in the previous month, while the Eurozone average was 1.97%.

The interest rate on loans to non-financial corporations for amounts over Euros 1 million rose to 3.40%, compared with 3.12% in the previous month, and is the third highest Eurozone interest rate in this category after Malta and Greece. The Eurozone average was 1.26%.

Deposit rates fall

The interest rate on deposits from households with an agreed maturity of up to one year registered a decline to 0.40%, compared with 0.54% in the previous month, while the Eurozone average was 0.31%.

The corresponding interest rate on deposits from non-financial corporations recorded a marginal decrease to 0.45%, compared with 0.46% in the previous month and is the third highest in the Eurozone after Greece and Italy. The average Eurozone rate for this category was 0.06%.

Source: Cyprus News Agency