March 2025 brought a major boost in lending activity across Cyprus, with pure new loans more than doubling from the previous month. According to the Central Bank of Cyprus, €658.2 million in fresh loans were granted in March—a sharp rise compared to €246.1 million in February.
Business Loans Lead the Way
The most dramatic increase came from large business loans (over €1 million), which shot up to €483.1 million, skyrocketing from just €92 million a month earlier.
Meanwhile, housing loans climbed to €103.8 million, a modest but notable rise from €92.8 million in February. Consumer loans also edged higher, reaching €22.8 million, compared to €19.3 million the month before.
Smaller business loans—those under €1 million—also saw an uptick, rising to €48.5 million, up from €42 million in February.
Total Lending Nearly Hits €1 Billion
When including both new and renegotiated loans, total lending in March reached €964.2 million, more than double the €431.8 million recorded in February. That total breaks down as follows:
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🏡 Housing loans: €188.2 million
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🛍 Consumer credit: €24.5 million
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🏢 Business loans under €1 million: €82.4 million
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🏦 Business loans over €1 million: €661.9 million
Interest Rates: A Mixed Bag
Interest rate movements in March painted a mixed picture:
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📈 Consumer credit rates rose to 7.40%, up from 7.11%
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🏡 Housing loan rates held steady at 4.56%
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📉 Large business loan rates (over €1M) dropped to 3.87%, down from 4.48%
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📈 Small business loan rates (under €1M) increased to 4.96%, compared to 4.66%
It’s worth noting that housing loan averages can vary month-to-month due to the mix of loans being issued (like loans for primary homes vs. vacation properties), even if individual rates don’t change.
Deposit Rates on the Decline
Depositors didn’t get much good news in March:
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🏠 Household deposit rates (for time deposits under 1 year) fell to 1.41%, down from 1.51%
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🏢 Corporate deposit rates dropped to 1.31%, down from 1.54%
Source: Stockwatch.com.cy