New business loans in Cyprus recorded a 25.4% drop in July from June while consumer loans and home mortgages increased, according to Central Bank data.
According to the official data, in July total new loans recorded an €82.6 million drop to €241.2 million compared to €323.7 million in the previous month with the pandemic seen as a determining factor.
Consumer loans rose 14% to €16.1 million from €14 million in June while new housing loans also recorded a modest 4.7% increase going up to €97.8 million, compared to €93.4 million in June.
On the contrary, new loans to non-financial corporations for amounts of up to €1 million fell to €33.5 million from €37.5 million in the previous month.
At the same time, new loans to non-financial corporations for amounts over €1 million, fell to €74.6 million, compared to €161.3 million in June.
According to the Central Bank of Cyprus, the interest rate on one-year term deposits for households recorded a drop and stood at 0.09% from 0.12% in June while the same rate for non-financial corporations remained unchanged in July at 0.03%.
The rate for consumer loans fell to 2.90% in July compared to 2.96% in June. The mortgage rate in July also fell to 2.05% compared to 2.10% in June.
However, the interest rate on loans to non-financial corporations for amounts of up to €1 million went up to 3.20% compared to 3.16% in the previous month while the interest rate to non-financial corporations for over €1 million reached 3.05% from 2.99% in June.
Source: Financial Mirror