The interest rate for consumer credit in Cyprus dropped to 6.77% in May 2025, according to data released by the Central Bank of Cyprus (CBC), reflecting a modest easing in borrowing costs for households.
In addition to the dip in consumer lending rates, the CBC also reported a notable decline in large-scale corporate borrowing. Specifically, new loans issued to non-financial corporations for amounts exceeding €1 million fell significantly to €82.6 million in May. This marks a sharp decrease from €159.2 million recorded in April.
The overall volume of new corporate loans (regardless of loan size) also saw a decline, dropping from €414.2 million in April to €379.7 million in May.
The latest figures suggest a cautious lending environment among businesses and banks, possibly influenced by ongoing economic uncertainties and shifting market conditions. As interest rates gradually ease, analysts will be watching closely to see if this encourages more borrowing in the second half of the year.
Source: Stockwatch.com.cy
