March 2025 brought a major upswing in lending across Cyprus, with total pure new loans climbing to €658.2 million, a sharp increase from €246.1 million in February, according to figures released by the Central Bank of Cyprus.
Business Lending Drives the Growth
The largest boost came from new loans issued to non-financial corporations for amounts exceeding €1 million. These soared to €483.1 million in March, compared to just €92 million the previous month.
Housing loans also increased, reaching €103.8 million from February’s €92.8 million. Consumer credit saw a smaller but steady rise, moving from €19.3 million to €22.8 million month-on-month.
Loans to businesses borrowing under €1 million also rose, albeit modestly, from €42 million in February to €48.5 million in March.
Total Lending Approaches €1 Billion
When including both new loans and restructured agreements, total lending activity in March reached €964.2 million—more than doubling February’s total of €431.8 million. This included:
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€188.2 million in total housing loans
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€24.5 million in consumer credit
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€82.4 million in business loans under €1 million
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€661.9 million in business loans over €1 million
Interest Rates Show Mixed Movements
The interest rate on consumer loans rose to 7.40% in March, up from 7.11% in February. Rates on housing loans, however, remained unchanged at 4.56%. It’s worth noting that the average housing loan rate can fluctuate depending on the mix of loan types (such as primary residences versus vacation homes), even if individual rates stay the same.
For business loans, the rate for amounts under €1 million increased to 4.96%, up from 4.66%. In contrast, rates for larger corporate loans over €1 million dropped significantly to 3.87%, down from 4.48%.
Deposit Rates Also Decline
Interest rates on deposits trended downward as well. Household time deposits with a term of up to one year fell to 1.41% from 1.51%. Meanwhile, the corresponding rate for non-financial corporations decreased to 1.31%, down from 1.54%.
Source: Stockwatch.com.cy