New lending recorded a significant decrease in August 2025, according to data released by the Central Bank of Cyprus (CBC) on average deposit and lending rates, as well as amounts of new loans.
The figures were published in the September 2025 edition of Monetary and Financial Statistics.
The interest rate on household deposits with an agreed maturity of up to one year remained unchanged at 1.08%.
By contrast, the corresponding rate on deposits from non-financial corporations declined to 1.15%, from 1.21% in July.
Lending rates
The interest rate on consumer credit decreased to 7.09%, compared with 7.40% in the previous month.
The rate on loans for house purchase rose slightly to 3.91%, from 3.87%. The CBC noted that the housing loan portfolio includes different loan types, such as loans for primary residences and holiday homes, which carry varying risks and rates, and this mix affects the weighted average independently of banks’ pricing.
For loans to non-financial corporations, the rate for amounts up to €1 million fell to 4.19% (from 4.29%), while the rate for loans over €1 million registered a marginal increase to 4.30% (from 4.29%).
New loans
Pure new loans amounted to €245.5 million in August (from a total of €420.4 million), compared with €445.3 million in July (from a total of €743.5 million).
Pure new consumer loans decreased to €20.4 million (from a total of €21.4 million), compared with €24.9 million in July (from a total of €26.8 million).
Pure new housing loans fell to €96.3 million (from a total of €144.1 million), compared with €125.1 million in July (from a total of €185.9 million).
Pure new loans to non-financial corporations up to €1 million dropped to €38.1 million (from a total of €52.6 million), compared with €57.3 million in July (from a total of €86.9 million).
Pure new loans to non-financial corporations over €1 million decreased sharply to €83.9 million (from a total of €190.6 million), compared with €230.9 million in July (from a total of €425.4 million).
It is noted that pure new loans include only new loan contracts, while total new loans also cover renegotiated contracts during the reference month.
Euro area comparison
Loan interest rates in Cyprus remain close to the euro area median. In August 2025, the interest rate on outstanding household loans stood at 3.98%, compared with 3.95% in the euro area.
For non-financial corporations, the corresponding rate in Cyprus was 4.26%, versus 3.78% in the euro area.
(Source: CNA)
