The issuance of net new loans in Cyprus saw a sharp decline in January 2025, dropping to €318.7 million from €592 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 and business loans, recorded a decline.
Breakdown of New Loans
According to data released by the Central Bank of Cyprus (CBC) on Wednesday:
Total Lending Activity
Including loan renegotiations, total new lending in January declined to €544.4 million, compared to €736.2 million in the previous month.
Shifts in Interest Rates
Interest rates displayed a mixed trend, with household borrowing costs decreasing while rates for larger business loans edged higher.
Deposit Interest Rates
In 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%.
These trends indicate a cautious lending environment, with businesses facing tighter borrowing conditions despite lower overall interest rates.
Source: Stockwatch.com.cy