New corporate loans exceeding €1 million experienced a significant surge, totalling €599.1 million, in May 2023, driving the total amount of all new loans to €1.07 billion, compared to €473.9 million in the previous month.
According to a report released this week by the Central Bank of Cyprus (CBC), new consumer loans increased to €29.2 million, compared to €18.0 million in the previous month, while new housing loans saw a rise to €170.9 million from €118.9 million previously. In addition, new loans to non-financial corporations for amounts up to €1 million saw an increase to €89.5 million, compared to €60.1 million in the previous month. Furthermore, new loans to non-financial corporations exceeding €1 million registered a substantial growth to €753.4 million, compared to €269.3 million in the previous month.
Regarding the main developments in interest rates for new deposit and loan contracts, including renegotiated agreements, the Central Bank reported that the interest rate for household deposits with a maturity of up to one year increased to 0.79 per cent from 0.41 per cent in the previous month. The corresponding interest rate for non-financial corporations’ deposits rose to 1.19 per cent from 0.73 per cent previously. Moreover, the interest rate for consumer loans experienced an increase to 4.97 per cent from 4.85 per cent in the previous month, while the interest rate for housing loans decreased to 4.21 per cent from 4.45 per cent previously. Furthermore, according to the Central Bank, the interest rate for loans to non-financial corporations for amounts up to €1 million rose to 5.37 per cent from 5.31 per cent in the previous month.
Finally, the interest rate for loans to non-financial corporations exceeding €1 million recorded an increase to 6.35 per cent from 5.41 per cent previously. The notable growth in new loans to companies reflects increased economic activity and business expansion in Cyprus, as companies leverage financing opportunities to pursue their growth plans.