New loans provided by Cypriot banks rose by €217 million in September compared with August, driven mainly upwards by corporate loans over €1 million which rose by 127.6 million.
Furthermore, interest rates for consumer credit rose to a 4-year high and rates for housing loans and corporate loans up to €1 million rose to a 6-year high, in the context of the ECB’s monetary policy normalization.
According to data released by the Central Bank of Cyprus (CBC) total new lending in Cyprus in September amounted to €478.3 million compared with €261.3 million in the previous month.
Consumer credit amounted to €15.6 million in September compared with €12.3 the month before, while loans for home purchases rose to €102.9 million from €79.2 million in August.
New lending to corporations up to €1 million rose to €54.1 million in September from 30.7 million the month before, whereas new corporate loans over €1 million amounted to €295.9 million compared with €132.3 in the previous month.
Interest rates continue rising
Interest rates for households with an agreed maturity of up to one year amounted to 0.11% in September from 0.06% in the previous month, climbing to the highest level since July 2020.
Rates for deposits from non-financial corporations declined to 0.09% from 0.13% in September.
According to the CBC data, interest rates for new consumer loans climbed to 3.59% in September from 3.36% in the previous month which is the highest level since October 2018.
Interest rates for new housing loans rose to 3.06% in September compared with 2.56% in the month before, reaching the highest level since June 2016.
Interest rates for corporate loans up to €1 million climbed to 4.13% in September from 3.85% in the previous month, marking a new high level since August 2016.
According to the CBC, interest rates for new corporate loans over €1 million rose to 3.69% in September from 3.69% the month before.