Interest rates continued to rise in December 2024, CBC says

Deposit and lending rates regarding household products continued to rise during December 2024, according to data published by the Central Bank of Cyprus (CBC).

The interest rate on deposits from households with an agreed maturity of up to one year recorded an increase to 1.78%, compared with 1.70% in the previous month. The corresponding interest rate on deposits from non-financial corporations registered a decrease to 1.74%, compared with 1.99% in the previous month.

The interest rate on consumer credit increased to 7.20%, compared with 6.99% in the previous month.

The interest rate on loans for house purchase increased to 4.75%, compared with 4.50% in the previous month.

The CBC notes that the portfolio of loans for house purchase contains various types of loans, such as loans for primary residence, for vacation houses etc, which bear different risk and interest rate. The composition of the housing loans portfolio varies from month to month, resulting in changes to the level of the weighted average interest rate, independently of the increases or decreases of the interest rates of the banks. 

Amounts of new loans

Total new loans recorded an increase to €736.2 million in December 2024, compared with €635.7 million in the previous month, mainly due to the increase of new loans to non-financial corporations for amounts over €1 million.

New loans for consumption decreased to €17.9 million, of which €16.9 million pure new loans, compared with €25.3 million in the previous month, of which €22.3 million pure new loans.

New loans for house purchase recorded a decrease to €120.7 million, of which €95.5 million pure new loans, compared with €129.5 million in the previous month, of which €98.5 million pure new loans.

New loans to non-financial corporations for amounts up to €1 million increased to €90.6 million, of which €77.6 million pure new loans, compared with €73.5 million in the previous month, of which €57.8 million pure new loans.

Lastly, new loans to non-financial corporations for amounts over €1 million registered an increase to €499.8 million, of which €401.9 million pure new loans, compared with €398.2 million in the previous month, of which €154.5 million pure new loans.

(Source: CNA)