Fresh lending up significantly in March

New lending in Cyprus recorded a substantial increase in March 2025, with pure new loans reaching €658.2 million, up significantly from €246.1 million in February, according to the Central Bank of Cyprus.

The strongest growth was observed in pure new loans to non-financial corporations for amounts exceeding €1 million, which surged to €483.1 million in March from €92 million the previous month. Housing loans also showed a notable rise, with pure new lending increasing to €103.8 million, compared with €92.8 million in February. Consumer credit reached €22.8 million in March from €19.3 million the previous month.

Pure new loans to non-financial corporations for amounts up to €1 million increased to €48.5 million in March compared to €42 million in February.

In terms of total new loans—including both pure new loans and renegotiated contracts—lending increased to €964.2 million in March, compared with €431.8 million in the previous month. This included €188.2 million in total housing loans, €24.5 million in consumer credit, €82.4 million in business loans up to €1 million, and €661.9 million in business loans above €1 million.

Interest rates for large corporate loans decreased

On the interest rate front, the average rate for consumer credit rose to 7.40% in March, up from 7.11% the previous month. The interest rate for housing loans remained unchanged at 4.56%. It is noted that the composition of the mortgage loan portfolio, which includes various types of housing loans (e.g., primary residence, vacation homes), fluctuates monthly and influences the weighted average rate, regardless of changes to individual loan rates.

The interest rate for loans to non-financial corporations up to €1 million increased to 4.96%, compared with 4.66% in February. In contrast, the rate for loans to non-financial corporations over €1 million fell to 3.87%, down from 4.48%.

Deposit rates also saw declines. The interest rate on household time deposits with a maturity of up to one year decreased to 1.41%, from 1.51% in February. For non-financial corporations, the corresponding deposit rate dropped to 1.31%, from 1.54%.