12° Nicosia,
15 July, 2024

Surge in corporate loans despite interest rate hike

Central Bank reports increased borrowing by non-financial corporations in May 2024, despite rising lending rates


The Central Bank of Cyprus has released its latest data revealing notable shifts in financial trends for May 2024. Despite a 0.52% uptick in lending rates for non-financial corporations borrowing amounts over €1 million, new loans to these entities surged by 10% compared to the previous month. The report, featured in the June 2024 edition of Monetary and Financial Statistics, highlighted changes across various interest rates: deposits from households saw a decrease to 2.02%, while rates for non-financial corporations rose to 2.29%. Consumer credit interest rates climbed to 6.49%, whereas mortgage rates dipped to 4.53%.

In terms of new loans, the total amount increased to €427.6 million in May 2024, up from €422.6 million in April. Notably, loans for consumption decreased to €21.2 million, and loans for house purchases also saw a decline to €119.7 million. Meanwhile, loans to non-financial corporations under €1 million dropped to €55.5 million, while loans exceeding €1 million rose to €224 million. Despite the higher interest rate, these larger corporate loans expanded significantly from €203.5 million in April to €224 million in May. These statistics underscore the evolving financial landscape and economic activity in Cyprus.

[With information from CNA]

Cyprus  |  loans  |  banks  |  interest rates

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