Pure new loans recorded a decrease to €429.4 million in October 2025 (from total of €624.9 million), compared with €447.9 million (from a total of €770.5 million) in the previous month, according to figures by the Central Bank of Cyprus.
More specifically, pure new loans for consumption increased to €23.7 million (from a total of €25.1 million), compared with €21.2 million in the previous month (from a total of €22.6 million).
Pure new loans for house purchase recorded an increase to €117.5 million (from a total of €158.7 million), compared with €112.9 million in the previous month (from a total of €165.4 million).
Pure new loans to non-financial corporations for amounts up to €1 million decreased to €50.8 million (from a total of €68.3 million), compared with €62.7 million in the previous month (from a total of €83.7 million).
The figures also show that new loans to non-financial corporations for amounts over €1 million registered a decrease to €232.0 million (from a total of €359.6 million), compared with €246.7 million in the previous month (from a total of €492.5 million).
As regards the interest rate level on outstanding loans in Cyprus, figures show that it is close to the respective Eurozone median, with the spread standing at zero (0.0%) for households and to 0.4% for non-financial corporations.
The interest rate level on new loans in Cyprus is comparable to the Eurozone median. More specifically, the spread between the weighted average interest rate on loans to households for house purchase stands at -0.3% (lower than the Eurozone median), while the respective spread for non-financial corporations is limited to just 0.1%.
In contrast to the interest rates on loans, interest rates on outstanding deposits in Cyprus are considered as outlier, standing at the lower level within Eurozone.
This might be attributed to the excess liquidity of credit institutions in Cyprus, which is among the highest ones within Eurozone, (indicatively, the Liquidity Coverage Ratio – LCR in Cyprus in October 2025 stood at 329%, compared with 183% (median) and 162% (mean) in the European Union in June 2025), as well as to the short range of the banking sector in Cyprus.
Similarly with interest rates on outstanding deposits, the interest rates on new deposits in Cyprus are standing at the lower level within the Eurozone, due to the same reasons mentioned above.
The interest rate on deposits from households with an agreed maturity of up to one year recorded a decrease to 1.07%, compared with 1.10% in the previous month.
The corresponding interest rate on deposits from non-financial corporations registered a marginal decrease to 1.23%, compared with 1.24% in the previous month.
The interest rate on consumer credit increased to 6.88%, compared with 6.46% in the previous month.
The interest rate on loans for house purchase increased to 3.73%, compared with 3.63% in the previous month. It is noted that the portfolio of loans for house purchase of the MFIs contains various types of loans such as loans for primary residence, for vacation houses etc. which bear different risk and interest rate.
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 in the interest rates of the MFIs.
The interest rate on loans to non-financial corporations for amounts up to €1 million increased to 4.39%, compared with 4.32% in the previous month. The interest rate on loans to non-financial corporations for amounts over €1 million registered a decrease to 3.69%, compared with 3.79% in the previous month.
(Source: CNA)
