Interest rate on house purchase loans recorded a decrease in July, while an increase was recorded on consumer rate, according to figures released by the Central Bank of Cyprus.
The loan interest rate level in Cyprus is close to the respective median of the Eurozone.
The CBC figures show that the interest rate on deposits from households with an agreed maturity of up to one year recorded a decrease to 1.08%, compared with 1.13% in the previous month. The corresponding interest rate on deposits from non-financial corporations registered an increase to 1.21%, compared with 1.18% in the previous month.
The interest rate on consumer credit increased to 7.40%, compared with 7.01% in the previous month.
The interest rate on loans for house purchase decreased to 3.87%, compared with 3.95% in the previous month.
It is noted that the portfolio of loans for house purchase of the Monetary Financial Institutions (MFIs) contains various types of loans, such as loans for primary residence, for vacation houses etc, which bear different risk and interest rate.
CBC figures show that the composition of the housing loans portfolio varies from month to month, resulting in changes to the level of the weighted average interest rate, independently of the increases or decreases of the interest rates of the MFIs.
Moreover, the interest rate on loans to non-financial corporations for amounts up to €1 million decreased to 4.29%, compared with 4.39% in the previous month.
The interest rate on loans to non-financial corporations for amounts over €1 million registered an increase to 4.29%, compared with 4.04% in the previous month.
Pure new loans recorded a decrease to €445.3 million in July 2025 (from a total of €743.5 million), compared with €642.8 million (from a total of €959.5 million) in the previous month.
More specifically, pure new loans for consumption increased to €24.9 million (from a total of €26.8 million), compared with €23.2 million in the previous month (from a total of €24.7 million).
Pure new loans for house purchase recorded a decrease to €125.1 million (from a total of €185.9 million), compared with €131.4 million in the previous month (from a total of €186.6 million).
Moreover, pure new loans to non-financial corporations for amounts up to €1 million decreased to €57.3 million (from a total of €86.9 million), compared with €61.9 million in the previous month (from a total of €90.3 million).
CBC data also show that pure new loans to non-financial corporations for amounts over €1 million registered a decrease to €230.9 million (from a total of €425.4 million), compared with €420.6 million in the previous month (from a total of €643.6 million).
In comparison with the other euro area countries, the loan interest rate level in Cyprus is close to the respective median of eurozone.
More specifically, in July 2025 the interest rate on outstanding loans to households stood at 4.05%, compared with 3.96% for the eurozone countries.
Moreover, the interest rate on outstanding loans to non-financial corporations stood at 4.31%, compared with 3.79% for the eurozone countries.
(Source: CNA)
