Corporation loans for over €1 million up 10% in May, despite increase on rate

Although the lending interest rate for non-financial corporations for amounts over €1 million recorded an increase of 0.52% in May, new loans granted in May 2024 to these companies increased by 10% compared to the previous month.

The Central Bank of Cyprus has released statistics on interest rates applied by monetary financial institutions in Cyprus on deposits and loans, as well as data regarding volumes of new euro denominated loans for May 2024. These statistics are included in the June 2024 edition of Monetary and Financial Statistics. 

Deposit Rates

The interest rate on deposits from households with an agreed maturity of up to one year recorded a decrease to 2.02% in May, compared with 2.16% in the previous month. At the same time, the corresponding interest rate on deposits from non-financial corporations registered an increase to 2.29%, compared with 1.82% in the previous month.

Lending Rates

The interest rate on consumer credit increased to 6.49% in May, compared with 6.43% in the previous month. The interest rate on loans for house purchase decreased to 4.53%, compared with 4.70% in the previous month.

The interest rate on loans to non-financial corporations for amounts up to €1 million decreased to 5.27%, compared with 5.58% in the previous month.

On the other hand, the interest rate on loans to non-financial corporations for amounts over €1 million registered an increase to 6.32%, compared with 5.80% in the previous month. 

Amounts of new loans

Total new loans recorded an increase to €427.6 million in May 2024, compared with €422.6 million in the previous month.

New loans for consumption decreased to €21.2 million (of which €19.8 mil. pure new loans), compared with €22.4 million in the previous month (of which €21 mil. pure new loans).

New loans for house purchase recorded a decrease to €119.7 million (of which €92.2 mil. pure new loans), compared with €123.8 million in the previous month (of which €90.1 mil. pure new loans).

New loans to non-financial corporations for amounts up to €1 million decreased to €55.5 million (of which €43.3 mil. pure new loans), compared with €67.5 million in the previous month (of which €52.4 mil. pure new loans).

New loans to non-financial corporations for amounts over €1 million registered an increase to €224 million (of which €115,7 mil. pure new loans), compared with €203.5 million in the previous month (of which €140,8 mil. pure new loans), despite the 0.52% increase on the interest rate, shown above.

(Source: CNA)