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