European Central Bank data records the increased interest of borrowers for new loans in combination with the retreat of loan interest rates to new low levels.

The credit institutions in Cyprus gave €1.6 billion in new loans during the first half of 2017, compared to €1 billion in the same period of 2016. During the first half of 2015, new loans were valued even lower, at €720 million. The increase during the first half of 2017 compared to the same period of 2015 was 55.7%, and 41.1% compared to the same period of 2016.

Along with the loan restructurings, the increase in the first half of 2017 is limited to 7.7%, a percentage which is quite low compared to previous years. The first half of 2016, the increase was 42.5% and in 2015 it was 11.1%.

In previous years, the rate of change was negative regarding new loans and restructurings. In the first half of 2014, the rate of change was -54.9%, in 2013 it was -11.6%, in 2012 it was -19.6%, in 2011 it was -26.8% and in 2010 it was 37.1%.

In the first half of 2016, new housing loans with restructurings decreased by 12%, receding to €368 million from €416 million in 2016.

In 2014, housing loans were valued at €276 million, and along with restructurings of €1.04 billion, in 2013 they were valued at €754 million, and €2.31 billion with restructurings. The first half of 2012 new housing loans were €670 million, and €2.61 billion with restructurings. In 2011, new housing loans were €1.08 billion, or €3.25 billion along with restructurings.

In 2010, new housing loans were valued at €1.6 billion, or €4.43 with the restructurings. In 2009, the new housing loans were €752 million, or €3.23 billion with the value of the restructurings.

The new business loans with restructurings show an increase of 13%, reaching €1.32 billion from €1.16 billion. Restructurings last year were €555 million, while this year they are €217 million.

Source: InCyprus