Deposit interest rates in Cyprus are the lowest in the eurozone, according to data published by the Central Bank of Cyprus for June 2026.
While the interest rate on deposits from households with an agreed maturity of up to one year recorded an increase to 1.42%, compared with 1.25% in the previous month and the interest rate on deposits from non-financial corporations registered an increase to 1.41%, compared with 1.31% in the previous month, CBC notes that deposit interest rates in Cyprus are considered as outlier, standing at the lower level within the Eurozone.
According to the CBC, this might be attributed to the excess liquidity of credit institutions in Cyprus, which is among the higher ones within Eurozone. (indicatively, the Liquidity Coverage Ratio – LCR in Cyprus in June 2026 stood at 310%, compared with 189% (median) and 158% (mean) in European Union in March 2026, as well as to the short range of the banking sector in Cyprus.
The interest rates on new deposits in Cyprus are standing at similar levels with interest rates on outstanding deposits.
Lending rates
The interest rate on consumer credit decreased to 6.50%, compared with 6.95% in the previous month. The interest rate on loans for house purchase decreased marginally to 4.04%, compared with 4.06% in the previous month.
At the same time, the interest rate on loans to non-financial corporations for amounts up to €1 million increased to 4.32%, compared with 4.27% in the previous month. The interest rate on loans to non-financial corporations for amounts over €1 million registered an increase to 4.07%, compared with 3.85% in the previous month.
According to the CBC, 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 -0.2% (lower than the Eurozone median), while the respective spread for non-financial corporations stands at 0.3%.
Amounts of pure new loans
Pure new loans recorded an increase to €626.2 million in June 2026 (from total of €831.3 million), compared with €361.9 million (from total of €594.5 million) in the previous month.
Pure new loans for consumption increased to €25.1 million (from total of €29.6 million), compared with €23.9 million in the previous month (from total of €25.6 million).
Pure new loans for house purchase recorded an increase to €152.1 million (from total of €201.1 million), compared with €145.5 million in the previous month (from total of €197.2 million).
Pure new loans to non-financial corporations for amounts up to €1 million decreased to €54.5 million (from total of €77.3 million), compared with €63.4 million in the previous month (from total of €75.7 million).
Pure new loans to non-financial corporations for amounts over €1 million registered an increase to €387.5 million (from total of €512.5 million), compared with €121.5 million in the previous month (from total of €282.9 million).
(Source: CNA)
