May Sees 10% Rise in Large Corporate Loans Despite Interest Rate Hike
Central Bank of Cyprus Releases Latest Data on Interest Rates and Loan Volumes
Although the lending interest rate for non-financial corporations for amounts over €1 million increased by 0.52% in May, new loans granted to these companies rose by 10% compared to the previous month.
The Central Bank of Cyprus released on Thursday statistics on interest rates applied by monetary financial institutions in Cyprus on deposits and loans, as well as data regarding the volumes of new euro-denominated loans for May 2024. These statistics are included in the June 2024 edition of Monetary and Financial Statistics.
The interest rate on deposits from households with an agreed maturity of up to one year decreased to 2.02% in May, compared to 2.16% in the previous month. Conversely, the interest rate on deposits from non-financial corporations increased to 2.29%, up from 1.82% in the previous month.
The interest rate on consumer credit rose to 6.49% in May, compared to 6.43% in the previous month. The interest rate on loans for house purchases decreased to 4.53%, down from 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 to 5.58% in the previous month. However, the interest rate on loans to non-financial corporations for amounts over €1 million increased to 6.32%, up from 5.80% in the previous month.
Total new loans increased to €427.6 million in May 2024, compared to €422.6 million in the previous month.
New loans for consumption decreased to €21.2 million (with €19.8 million being pure new loans), compared to €22.4 million in the previous month (with €21 million being pure new loans).
New loans for house purchases decreased to €119.7 million (with €92.2 million being pure new loans), compared to €123.8 million in the previous month (with €90.1 million being pure new loans).
New loans to non-financial corporations for amounts up to €1 million decreased to €55.5 million (with €43.3 million being pure new loans), compared to €67.5 million in the previous month (with €52.4 million being pure new loans).
New loans to non-financial corporations for amounts over €1 million increased to €224 million (with €115.7 million being pure new loans), compared to €203.5 million in the previous month (with €140.8 million being pure new loans), despite the 0.52% increase in the interest rate mentioned above.
