Loans gain €8.5 million momentum

Total loans in August recorded a net increase of €8.5 million, following a significant decrease of €100 million the previous month. Meanwhile, for a second consecutive month, deposits saw a net decrease, amounting to €175.5 million.

According to the Central Bank of Cyprus (CBC), total deposits in August 2023 decreased by a net €175.5 million, in contrast to the €301.1 million net decrease observed in July 2023. The annual growth rate stood at 1.7%, down from 2.4% in July 2023. The total deposit balance reached €51.8 billion in August 2023, compared to €51.48 billion in August 2022.

Furthermore, according to the CBC, total loans in August 2023 recorded a net increase of €8.5 million, contrasting with the net decrease of €100.3 million in July 2023. The annual growth rate for loans stood at -0.6%, an improvement from the -1.0% rate seen in July 2023. The total outstanding loans amounted to €25.0 billion in August 2023, showing a decrease of approximately €3.46 billion compared to August 2022 when they stood at €28.46 billion.

Business and household loans also saw changes. Loans to "Other Financial Intermediaries" recorded a net increase of €60.1 million in August 2023 compared to the previous month, while loans to businesses decreased by €21.7 million following a €106.2 million decrease in July.

Additionally, total loans to households saw a net decrease of €28.3 million in August 2023. Specifically, consumer loans recorded a net increase for the fourth consecutive month in August 2023, totalling €2.3 million. In contrast, housing loans decreased by €15.0 million after three months of continuous growth, and other loans to households decreased for the second consecutive month, by €15.7 million.