articles | 05 February 2015

Cyprus deposit and lending rates go up

Home and company deposit and lending rates went up in December 2014 according to relevant Central Bank data, with the businesses rate remaining stable.

The one year deposit interest rate for homes was up to 2.63% a point 10 rise, while lending rates to homes rose to 5.61% an increase of 0.31%, as recorded by the Central Bank.

The home purchase lending rate was alsoon the rise to 4.43% in comparison to 4.19% in November last year.

The rate on loans to non-funding firms for amounts over the one million mark also went up by more than 1% (1.02%) from 5.63% to 6.61%.

Interest rates in Cyprus are much higher than the rest of the eurozone. In November the interest rate on business overdrafts was 6.3% compared with a eurozone average of 3.54% according to European Central Bank data.

Head of Supervision at the Central Bank said last month that a team of technocrats had been commissioned to prepare proposals and recommendations on ways to reduce interest rates and to increase the pace of restructuring bad loans.

Source: InCyprus

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