Deposit and lending interest rates down in April according to CBC

Both deposit and lending interest rates recorded a decrease in April, according to data published by the Central Bank of Cyprus.

Total new loans recorded a decrease of €282 million compared to the previous month, mainly due to a drop in new loans to non-financial corporations for amounts over €1 million.

Interest rates

The interest rate on deposits from households with an agreed maturity of up to one year recorded a decrease to 1.26%, compared with 1.41% in the previous month. The corresponding interest rate on deposits from non-financial corporations registered an increase to 1.37%, compared with 1.31% in the previous month.

The interest rate on consumer credit decreased to 7.06%, compared with 7.40% in the previous month. The interest rate on loans for house purchase decreased to 3.78%, compared with 4.56% in the previous month. CBC notes that the portfolio of loans for house purchase 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 of the interest rates.

Finally, the interest rate on loans to non-financial corporations for amounts up to €1 million decreased to 4.65%, compared with 4.96% in the previous month. The interest rate on loans to non-financial corporations for amounts over €1 million registered an increase to 4.13%, compared with 3.87% in the previous month. 

Amounts of new loans

Total new loans recorded a decrease to €682.2 million in April 2025, compared with €964.2 million in the previous month.

New loans for consumption decreased to €21.8 million (of which €20.7 million pure new loans), compared with €24.5 million in the previous month (of which €22.8 million pure new loans).

New loans for house purchase recorded a decrease to €161.8 million (of which €98.2 million pure new loans), compared with €188.2 million in the previous month (of which €103.8 million pure new loans).

New loans to non-financial corporations for amounts up to €1 million decreased to €68.5 million (of which €37.9 million pure new loans), compared with €82.4 million in the previous month (of which €48.5 million pure new loans).

New loans to non-financial corporations for amounts over €1 million registered a decrease to €414.2 million (of which €159.2 million pure new loans), compared with €661.9 million in the previous month (of which €483.1 million pure new loans).

(Source: CNA)