CLOSE
Loading...
12° Nicosia,
19 July, 2024
 
Home  /  News

Declining new loans in Cyprus signals economic shifts

New loans experience a sharp decline to 473.9 million euros, significantly impacting various sectors

Panayiotis Rougalas

Panayiotis Rougalas

In April 2023, Cyprus experienced a notable decline in new lending, as reported by the Central Bank of Cyprus. The data reveals that total new loans contracted to 473.9 million euros, a significant drop from the previous month's figure of 922.5 million euros in March 2023. This decline was observed across multiple sectors, impacting consumer loans, house purchase loans, and loans to non-financial companies.

New consumer loans, in particular, reached 18 million euros in April, demonstrating a decrease from the previous month's 30.7 million euros. Similarly, loans for house purchases experienced a decline, falling to 115.4 million euros compared to the last month's 199.5 million euros. Loans to non-financial companies for amounts up to 1 million euros were also affected, reducing to 60.1 million euros in April, while loans exceeding 1 million euros dropped to 269.3 million euros.

New consumer loans, in particular, reached 18 million euros in April, demonstrating a decrease from the previous month's 30.7 million euros.

The previous month, March 2023, witnessed an upswing in total new loans, reaching 922.5 million euros, up from 527.5 million euros in February 2023. This increase was fueled by higher consumer loans, which rose to 30.7 million euros, and loans for house purchases, which climbed to 199.5 million euros. Loans to non-financial companies for amounts up to 1 million euros amounted to 109 million euros, while loans exceeding 1 million euros stood at 571.2 million euros.

In February 2023, there was a notable rise in total new loans, reaching 527.5 million euros. Although consumer loans increased to 16.3 million euros, loans for house purchases experienced a decline, settling at 85.5 million euros. Loans to non-financial corporations for amounts up to 1 million euros decreased to 44.5 million euros, while loans surpassing 1 million euros witnessed a surge, reaching 374 million euros.

Unfortunately, new lending in January 2023 also experienced a decline. Total new loans amounted to 305.7 million euros, down from 545.2 million euros in December 2022. Consumer loans decreased to 13.1 million euros, loans for house purchases dropped to 90.9 million euros, loans to non-financial companies for amounts up to 1 million euros fell to 51.4 million euros, and loans exceeding 1 million euros recorded a decline, reaching 144.1 million euros.

The fluctuations in new lending highlight the dynamic nature of Cyprus' economic landscape. As the country navigates these shifts, policymakers and financial institutions will continue to monitor and adapt to ensure stability and promote sustainable growth in the lending sector.

[This article was translated from its Greek original]

TAGS
Cyprus  |  loan  |  lending  |  economy

News: Latest Articles

X