Loan and Deposit Rates Drop in April as New Lending Contracts Sharply
Central Bank of Cyprus reports falling interest rates on both deposits and loans, while total new lending declines by over €280 million, driven by corporate loan drop.
Both deposit and lending interest rates fell in April, according to data released on Wednesday by the Central Bank of Cyprus (CBC). However, the report also showed a notable contraction in total new loans, which dropped by €282 million compared to March. The decline was mainly attributed to a reduction in new loans granted to non-financial corporations for amounts exceeding €1 million.
The CBC report offered a detailed breakdown of interest rate movements and new lending volumes across household and corporate segments.
The interest rate for household time deposits up to one year decreased to 1.26%, down from 1.41% in the previous month. In contrast, the rate for non-financial corporation deposits slightly increased to 1.37%, compared to 1.31% in March.
On the lending side, consumer loan interest rates dropped to 7.06%, down from 7.40%. The rate for housing loans fell to 3.78%, compared to 4.56% in the previous month. The Central Bank emphasized that the mortgage portfolio includes a variety of loan types—such as loans for primary residences and holiday homes—which carry different risk profiles and therefore different rates. As the portfolio’s composition changes monthly, these fluctuations can impact the average weighted rate, regardless of actual interest rate trends.
For loans to non-financial corporations up to €1 million, the rate declined to 4.65% from 4.96%. However, the rate for corporate loans exceeding €1 million increased to 4.13%, up from 3.87%.
The total volume of new loans in April 2025 decreased significantly to €682.2 million, compared to €964.2 million in March.
New consumer loans fell to €21.8 million (of which €20.7 million were net new loans), down from €24.5 million in the previous month (€22.8 million net).
New housing loans also declined to €161.8 million, with net new loans amounting to €98.2 million. This represents a decrease from €188.2 million in March, of which €103.8 million were net new loans.
Loans to non-financial corporations up to €1 million decreased to €68.5 million (€37.9 million net), compared to €82.4 million in March (€48.5 million net).
The most significant drop was seen in loans to non-financial corporations exceeding €1 million, which fell to €414.2 million (€159.2 million net), compared to €661.9 million the previous month (€483.1 million net).
