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Cyprus banks had a busy first quarter in 2025, handing out €1.24 billion in new loans, as falling interest rates sparked renewed interest in borrowing, according to Kathimerini's Panayiotis Rougalas.
The European Central Bank (ECB) has cut interest rates seven times since summer 2024, each by 0.25%, making loans cheaper and more appealing. That shift seems to have opened the floodgates for individuals and businesses who had been holding back during high-rate periods.
Two of Cyprus’ biggest banks — Hellenic Bank and Bank of Cyprus — saw major growth:
Hellenic Bank nearly doubled its lending compared to Q1 2024, reaching €404 million. Of that, €75 million was in “green loans” (loans supporting eco-friendly projects).
Bank of Cyprus hit a record €842 million in new loans — up 25% from Q1 last year and 16% higher than the last quarter of 2024.
Bank of Cyprus CEO Panikos Nikolaou said this strong lending performance was driven by several factors: a healthy economy, falling interest rates, and growing borrower confidence. He hinted that 2025 could turn out to be a great year overall for lending.
Here’s a quick breakdown of where the money went:
Bank of Cyprus gave out:
€430M to large businesses
€202M in personal loans (including €114M for home mortgages)
€71M to small and medium-sized enterprises (SMEs)
€139M to international clients
Hellenic Bank’s breakdown included:
€123M in retail loans (with €87M in mortgages)
€105M in corporate loans
€48M in commercial lending
€127M in shipping and international loans
These two banks alone account for about 70% of all loans in Cyprus, so their performance paints a clear picture of where the local economy is heading.
Interestingly, their strong Q1 results lined up with expectations. A Central Bank of Cyprus survey from the end of 2024 had predicted higher loan demand and looser borrowing requirements — and that’s exactly what played out.
If this trend continues, 2025 could shape up to be a turning point year for borrowing and growth in Cyprus.
