Interest on consumer credit rose to 6.67% in July

The interest rate on consumer credit increased to 6.67% in July compared with 6.18% the previous month, while the interest rate on loans for house purchase increased to 4.59% from 4.52% in June, according to stats released by the Central Bank of Cyprus (CBC).

The CBC’s report focuses on the average interest rates applied by monetary financial institutions in Cyprus on deposits and loans of euro area residents in euro, as well as data regarding volumes (amounts) of new euro denominated loans to euro area residents for the reference month of July 2024.

As it said, the interest rate on deposits from households with an agreed maturity of up to one year recorded a decrease to 1.96%, compared with 2.17% in the previous month.

The corresponding interest rate on deposits from non-financial corporations registered a decrease to 2.28%, compared with 2.35% in the previous month, it adds.

As regards lending rates, the interest rate on consumer credit increased to 6.67%, compared with 6.18% in the previous month.

Furthermore, the interest rate on loans for house purchase increased to 4.59%, compared with 4.52% in the previous month.

The interest rate on loans to non-financial corporations for amounts up to €1 million increased to 5.57%, in July compared with 5.45% in the previous month. The interest rate on loans to non-financial corporations for amounts over €1 million registered an increase to 5.64%, compared with 5.33% in the previous month.

The CBC also notes that total new loans recorded an increase to €595.3m in July 2024, compared with €514.9m in the previous month.

More specifically, new loans for consumption increased to €28.0m (of which €26.1m pure new loans), compared with €21.7m in the previous month (of which €20.3m pure new loans).

New loans for house purchase recorded an increase to €134.3m (of which €100.7m pure new loans), compared with €129.9m in the previous month (of which €107.1m pure new loans).

New loans to non-financial corporations for amounts up to €1m decreased to €74.5m (of which €48.5m pure new loans), compared with €77.8m in the previous month (of which €53.9m pure new loans), whereas new loans to non-financial corporations for amounts over €1m registered an increase to €345.2m (of which €211.8m pure new loans), compared with €272.4m in the previous month (of which €149.3m pure new loans).