Net new loans decreased by €18.5 million in October compared with the previous month, reaching €429.4 million, mainly due to a reduction in loans to companies, while net new housing loans rose to €117.5 million, according to data published on Wednesday by the Central Bank of Cyprus.

At the same time, the data show that interest rates on new contracts for consumer loans, housing loans, and loans to companies for amounts up to €1 million increased. The CBC notes that interest rates on new loans in Cyprus remain comparable to the euro area median, while interest rates on new deposits are at the lowest level in the eurozone. This is attributed to the high liquidity of Cypriot banks, which stood at 329% in October 2025, compared with the EU average of 162% in June 2025.

Specifically, according to the CBC, in October 2025 net new loans declined to €429.4 million (from a total of €624.9 million in new loans), compared with €447.9 million (from a total of €770.5 million) in the previous month.

Regarding the main categories of new loans, the CBC reports that net new consumer loans increased to €23.7 million (from a total of €25.1 million in new loans), compared with €21.2 million in the previous month (from a total of €22.6 million).

Net new housing loans rose to €117.5 million (from a total of €158.7 million in new loans), compared with €112.9 million in the previous month (from a total of €165.4 million).

In addition, net new loans to non-financial corporations for amounts up to €1 million decreased to €50.8 million (from a total of €68.3 million), compared with €62.7 million in the previous month (from a total of €83.7 million).

Net new loans to non-financial corporations for amounts over €1 million also fell to €232.0 million (from a total of €359.6 million), compared with €246.7 million in the previous month (from a total of €492.5 million).

According to the CBC, the interest rate on household time deposits of up to one year decreased to 1.07%, compared with 1.10% in the previous month.

The corresponding rate for deposits from non-financial corporations recorded a marginal decrease to 1.23%, compared with 1.24% in the previous month.

The interest rate on consumer loans increased to 6.88%, compared with 6.46% in the previous month.

The interest rate on housing loans rose to 3.73%, compared with 3.63% during the previous month.

The CBC notes that banks’ mortgage portfolios consist of various types of housing loans—such as loans for primary residence or holiday homes—which carry different levels of risk and interest rates.

It adds that the composition of this portfolio changes from month to month, which affects the weighted average interest rate, regardless of whether banks raise or lower their individual loan rates.

The CBC also reports that the interest rate on loans to non-financial corporations for amounts up to €1 million increased to 4.39%, compared with 4.32% in the previous month.

Meanwhile, the interest rate on loans to non-financial corporations for amounts exceeding €1 million decreased to 3.69%, compared with 3.79% in the previous month.

The CBC notes that these figures refer to new contracts for deposits and loans, including renegotiated agreements.

The CBC reports that interest rates on outstanding loan balances in Cyprus remain close to the eurozone median, with the margin at 0.0% for households and 0.4% for non-financial corporations.

Interest rates on new loans in Cyprus are broadly aligned with the euro area median. The margin of the weighted average rate for new housing loans to households stands at -0.3% (below the eurozone median), while the margin for non-financial corporations is limited to 0.1%.

Unlike lending rates, deposit rates in Cyprus remain among the lowest in the eurozone. According to the CBC, this may be due to the very high liquidity levels of Cypriot banks—among the highest in the euro area—as well as the small size of the domestic banking market.

Indicatively, the Liquidity Coverage Ratio (LCR) in Cyprus reached 329% in October 2025, compared with a median of 183% and an average of 162% in the EU in June 2025.

Similarly to existing deposits, interest rates on new deposits in Cyprus remain the lowest in the eurozone, for the same reasons cited above.