Source: CNA
A decrease in interest rates on deposits and consumer loans and a marginal increase in the interest rates on mortgages can be seen in the data published on Thursday by the Central Bank of Cyprus for March 2022.
The interest rate on deposits from households with an agreed maturity of up to one year recorded a decrease to 0.05%, compared with 0.07% in the previous month, while the corresponding interest rate on deposits from non-financial corporations registered a decrease to -0.01%, compared with 0.00% in the previous month.
On lending rates, the interest rate on consumer credit fell to 3.06%, compared with 3.19% in the previous month, while the interest rate on loans for home purchases increased to 2.16%, compared with 2.14% in the previous month.
The interest rate on loans to non-financial corporations for amounts up to €1 million fell to 3.14%, compared with 3.24% in the previous month. The interest rate on loans to non-financial corporations for amounts over €1 million registered an increase to 3.28%, compared with 3.16% in the previous month.
Moreover, total new loans recorded an increase to €506.7 million in March 2022, compared with €437.4 million in February.
In particular, new loans for consumption increased to €14.1 million, compared with €12.2 million in the previous month, while new loans for home purchases recorded an increase of €205.1 million, compared with €150.4 million in the previous month.
New loans to non-financial corporations for amounts of up to €1 million rose to €79.3 million, compared with €43.7 million in the previous month, whereas new loans to non-financial corporations for amounts over €1 million registered a decrease to €199.9 million, compared with €224.9 million in February.
These statistics are included in the April 2022 edition of Monetary and Financial Statistics.
Non-performing loans
In related news, the total recorded percentage of non-performing loans in the Cyprus banking sector at the end of January 2022 rose to 11.7%, compared to the recorded 11.1% at the end of 2021, according to the data released by the Central Bank of Cyprus (CBC) on Thursday.
NPLs in January 2022 rose to €3,006 million, from €3,000 at the end of December 2021.
The loan coverage ratio is up to 43.6% from 43.1% in the previous month, the CBC added.
Furthermore, total loans at end-2021 declined from €27.01 billion at the end of December to €25.56 billion in the previous month. The Central Bank notes that the large reduction in total lending is mainly due to loan repayments.
Since 31 December 2014 NPLs have been reduced by €24.3 billion or 89%, the CBC said.
