{"id":111403,"date":"2025-03-06T18:10:46","date_gmt":"2025-03-06T16:10:46","guid":{"rendered":"https:\/\/www.lamaisonestates.com\/?p=111403"},"modified":"2025-03-06T18:10:46","modified_gmt":"2025-03-06T16:10:46","slug":"new-loan-issuance-declines-in-january-despite-lower-interest-rates","status":"publish","type":"post","link":"https:\/\/www.lamaisonestates.com\/he\/new-loan-issuance-declines-in-january-despite-lower-interest-rates\/","title":{"rendered":"New Loan Issuance Declines in January Despite Lower Interest Rates"},"content":{"rendered":"

The issuance of net new loans in Cyprus saw a sharp decline in January 2025, dropping to \u20ac318.7 million from \u20ac592 million in December. The decrease was primarily driven by a slowdown in business lending, while consumer and housing loans showed mixed trends.<\/p>\n

At the same time, most loan interest rates, including those for housing and business loans, recorded a decline.<\/p>\n

Breakdown of New Loans<\/strong>
\nAccording to data released by the Central Bank of Cyprus (CBC) on Wednesday:<\/p>\n

  • Consumer loans<\/strong> rose to \u20ac25.2 million, up from \u20ac16.9 million in December.<\/li>\n
  • Housing loans<\/strong> declined to \u20ac87.6 million, compared to \u20ac95.5 million the previous month.<\/li>\n
  • Business loans up to \u20ac1 million<\/strong> dropped to \u20ac38.2 million, down from \u20ac77.6 million.<\/li>\n
  • Business loans exceeding \u20ac1 million<\/strong> fell significantly to \u20ac167.7 million, from \u20ac401.9 million in December.<\/li>\n

    <\/p>\n

    Total Lending Activity<\/strong>
    \nIncluding loan renegotiations, total new lending in January declined to \u20ac544.4 million, compared to \u20ac736.2 million in the previous month.<\/p>\n

  • New consumer loans<\/strong> rose to \u20ac26.5 million, from \u20ac17.9 million.<\/li>\n
  • Housing loans<\/strong> increased to \u20ac132.6 million, up from \u20ac120.7 million.<\/li>\n
  • Business loans up to \u20ac1 million<\/strong> fell to \u20ac53.2 million, from \u20ac90.6 million.<\/li>\n
  • Business loans over \u20ac1 million<\/strong> declined to \u20ac317.4 million, down from \u20ac499.8 million in December.<\/li>\n

    <\/p>\n

    Shifts in Interest Rates<\/strong>
    \nInterest rates displayed a mixed trend, with household borrowing costs decreasing while rates for larger business loans edged higher.<\/p>\n

  • Consumer loan interest rates<\/strong> dropped to 6.25%, from 7.20% in December.<\/li>\n
  • Housing loan rates<\/strong> fell to 4.47%, compared to 4.75%.<\/li>\n
  • Business loans up to \u20ac1 million<\/strong> saw a slight decrease to 5.08%, from 5.11%.<\/li>\n
  • Business loans exceeding \u20ac1 million<\/strong> increased to 4.90%, from 4.82%.<\/li>\n

    <\/p>\n

    Deposit Interest Rates<\/strong>
    \nIn the deposit sector, household term deposits (up to one year) saw a rate decline to 1.34%, from 1.79% in December. In contrast, deposit rates for non-financial corporations rose to 1.80%, up from 1.73%.<\/p>\n

    These trends indicate a cautious lending environment, with businesses facing tighter borrowing conditions despite lower overall interest rates.<\/p>\n

    Source: Stockwatch.com.cy<\/em><\/p>","protected":false},"excerpt":{"rendered":"

    The issuance of net new loans in Cyprus saw a sharp decline in January 2025, dropping to \u20ac318.7 million from \u20ac592 million in December. The decrease was primarily driven by a slowdown in business lending, while consumer and housing loans showed mixed trends. At the same time, most loan interest rates, including those for housing […]<\/p>","protected":false},"author":9,"featured_media":111404,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[211],"tags":[],"_links":{"self":[{"href":"https:\/\/www.lamaisonestates.com\/he\/wp-json\/wp\/v2\/posts\/111403"}],"collection":[{"href":"https:\/\/www.lamaisonestates.com\/he\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.lamaisonestates.com\/he\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.lamaisonestates.com\/he\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/www.lamaisonestates.com\/he\/wp-json\/wp\/v2\/comments?post=111403"}],"version-history":[{"count":1,"href":"https:\/\/www.lamaisonestates.com\/he\/wp-json\/wp\/v2\/posts\/111403\/revisions"}],"predecessor-version":[{"id":111405,"href":"https:\/\/www.lamaisonestates.com\/he\/wp-json\/wp\/v2\/posts\/111403\/revisions\/111405"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.lamaisonestates.com\/he\/wp-json\/wp\/v2\/media\/111404"}],"wp:attachment":[{"href":"https:\/\/www.lamaisonestates.com\/he\/wp-json\/wp\/v2\/media?parent=111403"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.lamaisonestates.com\/he\/wp-json\/wp\/v2\/categories?post=111403"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.lamaisonestates.com\/he\/wp-json\/wp\/v2\/tags?post=111403"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}