New loans drop in August for the second month in a row

Net new lending granted by Cyprus Banks fell in August by €182.3 million, recording a decrease for the second month in a row.

According to data released on Tuesday by Central Bank of Cyprus, for the period January – August, total new lending amounted to €2,115 million, compared to €1,833 million in the corresponding period last year, registering an increase of 15.3%.

New lending in August 2022 showed a decrease of 5.5% compared to the corresponding month last year.

The biggest category of new loans in August were mortgages with €77.2 million. The second largest category of loans were loans to non-financial corporations over €1 million, which amounted to €66.6 million, while loans to non-financial corporations for amounts up to €1 million amounted to €27.4 million

New loans for consumption were €10.9 million while other loans amounted to €5.7 million.

For the period January – August 2022, housing loans were the biggest category of new loans with €842.7 million followed by loans to non-financial corporations over €1 million with €778.9 million. Loans to non-financial corporations up to €1 million amounted to €338.8 million and consumer loans to €102.2 million. Finally, new lending concerning other loans amounted to €52.4 million.

Loan restructurings in August stood at €79.1 million compared to €82.2 million the previous month.