There is still a wide gap between deposit and lending interest rates in Cyprus compared to the eurozone ones. Lending rates in Cyprus are significantly higher than those in the eurozone, while deposit rates are lower, according to July data issued by the Central Bank of Cyprus (CBC).
The CBC published detailed interest rate data for deposits and loans for each credit institution with the aim of further enhancing transparency, it said.
Longterm deposits
For new household term deposits of up to one year, the average of all institutions in Cyprus is 1.08%, compared to 1.72% in the eurozone.
The highest interest rate is at Jordan Ahli Bank with 1.38%, followed by National Bank with 1.35%, Eurobank with 1.26%, Ancoria with 1.25%, Alpha Bank with 1.09%, Hellenic with 0.95%, Cyprus Development Bank with 0.93%, Bank of Cyprus with 0.87%, Astrobank with 0.76%, Housing Finance Corportation HFC with 0.75% and Societe Generale with 0.60%.
Regarding existing household term deposits with a maturity of up to two years, the average in Cyprus is 0.85%, compared to 1.99% in the eurozone. The highest interest rate is offered by Jordan Kuwait Bank with 1.91%, followed by National Bank with 1.89%, Arab Jordan Investment with 1.65%, Societe Generale with 1.51%, Ancoria with 1.49%, Jordan Ahli with 1.44%, Banque with 1.41%, Eurobank and the HFC with 1.35%, Cyprus Development Bank with 1.26%, Astrobank with 1.19%. The lowest interest rates are offered by Hellenic Bank with 0.57% and Bank of Cyprus with 0.48%.
For new term deposits of non-financial companies, with a maturity of up to one year, the average of all financial institutions in Cyprus is 1.21% compared to 1.88% in the eurozone. The highest interest rate is offered by Alpha Bank with 1.53%, followed by the Cyprus Development Bank with 1.50%, Hellenic Bank with 1.38%, Ancoria with 1.20%, Eurobank with 1.08%. The lowest interest rates are offered by Bank of Cyprus at 0.81%, Societe Generale with 0.55% and the HFC with 0.42%.
As regards existing term deposits of non-financial companies, with a maturity of up to two years, the average interest rate in Cyprus is at 1.2% and in the eurozone at 2.11%. The highest interest rate is offered by Arab Jordan Investment Bank with 1.98%, followed by Jordan Kuwait Bank with 1.93%, Societe Generale with 1.91% and National Bank with 1.70%. Alpha Bank offers an interest rate of 1.44% as do Astrobank and the Cyprus Development Bank, followed by Banque SBA with 1.37%, HFC with 1.29%, Ancoria with 1.28%, Jordan Ahli with 1.25%, Hellenic with 1.24%, Bank of Cyprus with 1.15% and Eurobank with 0.95%.
Housing loans
As regards new mortgage loan contracts, the average in Cyprus is at 3.9%. No data is provided for the corresponding European average. The highest interest rate is charged by the Bank of Cyprus (4.96%), followed by Societe Generale 4.83%, the Cyprus Development Bank 4.04%, Eurobank 3.83%, HFC 3.81%, Astrobank 3.47%, Alpha Bank 3.29%, Ancoria 3.22% and Hellenic 3.20%. As regards existing mortgage loan contracts, the lending interest rate in Cyprus is 3.71%, compared to 2.37% in the eurozone. The Bank of Cyprus has the highest interest rate with 3.93%, followed by Astrobank with 3.83%, Eurobank with 3.60% and Alpha Bank with 3.59%, Hellenic with 3.55%, Ancoria with 3.29%, National Bank with 3.26%, Cyprus Development Βank with 3.19%, HFC with 3.17% and Societe Generale with 3.04%.
Corporate loans
The average interest rate on new loans to non-financial companies up to €1 million is 4.46%. No data is provided for the European average. The highest interest rate is at Banque SBA (6.56%) followed by Astrobank with 5.75%, Bank of Cyprus 4.96%, Societe Generale 4.60%, National Bank 4.50%, Ancoria 4.47%, Eurobank 4.06%, Hellenic Bank 3.88%, Cyprus Development Bank 3.83% and Alpha Bank 3.44%.
The average interest rate on new loans to non-financial companies for amounts over €1 million reaches 4.02%. The highest interest rate is offered by Astrobank with 6.63%, followed by Hellenic Bank with 4.46% and Bank of Cyprus with 4.39%, Eurobank and National Bank with an interest rate of 3.75%, while Alpha Bank offers the lowest with 3.42%.
Regarding existing corporate loans, the average interest rate in Cyprus is 4.23%, compared to 3.03% in the eurozone. The highest interest rate is at Societe Generale with 5.05%, followed by Astrobank with 5.03%, the Cyprus Development Bank with 4.92%, Banque SBA 4.71%, Ancoria 4.70%, Societe Generale 4.38%, Alpha Bank 4.16%, Eurobank 4.09%, National Bank 3.89% and Hellenic Bank 3.85%.
(Source: CNA)
