Local
articles | 04 March 2016

Cyprus' housing lending rates highest in eurozone

Interest rates for loans and deposits in Cyprus continued to fall in January 2016, and are now at the lowest level at least since 2008, when data are available, however at the same time, the interest rate on loans for house purchase is the highest in the eurozone, recording an increase in January.

At the same time Cyprus has the highest interest rate for deposits from non-financial corporations.

Deposit Rates

According to figures released Wednesday by the European Central Bank, the interest rate on deposits from households with an agreed maturity of up to one year remained unchanged at 1.54% compared with the previous month and is the third highest in the Eurozone after Slovakia, with 1.60% and France with 1.59%. The average eurozone rate is 0.64%.

At the same time, the corresponding interest rate on deposits from non-financial corporations recorded a decline falling to 1.33%, compared with 1.49% in the previous month, but it remains by far the highest in the Eurozone, followed by Greece, with 1.10% and Slovakia with 0.32%. The euro area average interest rate is 0.25%.

Lending Rates

The interest rate on consumer credit decreased to 4.42%, compared with 4.56% in the previous month and is the third lowest in the Eurozone, after Belgium with 3.66% and Slovenia with 4.16%. The euro area average interest rate is at 5.31%.

The interest rate on loans for house purchase rose to 3.36%, compared with 3.28% in the previous month and it is the highest in the Eurozone despite the reduction to the lowest level since 2008. Ireland has the second highest rate with 3.18% and Slovakia the third with 3.16%. The euro area average interest rate is 1.98%.

The interest rate on loans to non-financial corporations for amounts up to €1 million fell to 4.46%, compared with 4.68% in the previous month and is the third highest in the Eurozone after Greece with 5.33% and Ireland with 4.76%. The euro area average interest rate is 2.71%.

In parallel, the interest rate on loans to non-financial corporations for amounts over €1 million registered a decrease to 3.72%, compared with 4.12% in the previous month. It is the third highest after Greece with 4.86% and Slovenia with 3.32%. The euro area average interest rate is 1.43%.

Source: Famagusta Gazette

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