Net new loans in Cyprus rose significantly in March 2025, reaching a total of €658.2 million, up from €246.1 million in February, according to data released by the Central Bank of Cyprus (CBC).

The most notable increase was recorded in net new loans to non-financial corporations for amounts exceeding €1 million, which soared to €483.1 million from €92 million the previous month.

Net new housing loans also saw a notable rise, reaching €103.8 million from €92.8 million in February, while net new consumer loans increased to €22.8 million, up from €19.3 million.

Net new loans to non-financial corporations for amounts up to €1 million totaled €48.5 million, compared to €42 million in February.

Total new loans—which include both net new loans and renegotiated contracts—rose to €964.2 million in March from €431.8 million in February. Of this amount, new housing loans reached €188.2 million, new consumer loans €24.5 million, business loans up to €1 million €82.4 million, and business loans over €1 million €661.9 million.

In terms of lending rates, the interest rate on consumer loans increased to 7.40% from 7.11%, while the housing loan rate remained stable at 4.56%. It is noted that the housing loan portfolio of MFIs (Monetary Financial Institutions) includes various types of loans—such as for primary residences, vacation homes, etc.—each carrying different risk levels and interest rates.

The composition of this portfolio fluctuates monthly, which affects the weighted average interest rate independently of changes in the MFI interest rates themselves.

The interest rate on business loans up to €1 million rose to 4.96% from 4.66%, while the rate for loans over €1 million dropped to 3.87% from 4.48%.

The average interest rate on household term deposits of up to one year fell to 1.41% from 1.51% in February, while the corresponding rate for deposits from non-financial corporations declined to 1.31% from 1.54%.

The Central Bank of Cyprus also reported a marginal decline in Non-Performing Loans (NPLs), based on data as of February 28, 2025.

Specifically, the NPL ratio dropped slightly to 6.2%, down from 6.3% in January, mainly due to repayments, reclassifications to performing categories, write-offs, and exchange rate fluctuations.

In absolute terms, NPLs fell to €1.55 billion in February from €1.56 billion in January. Loans overdue by more than 90 days decreased to €1.19 billion from €1.21 billion.

The total loan portfolio of the banking sector stood at €24.81 billion at the end of February, marking a mild increase from €24.72 billion in January.

At the same time, the NPL coverage ratio strengthened to 58.9%, up from 58.3%. Restructured loans by Licensed Credit Institutions amounted to €1.3 billion, of which €0.7 billion remain classified as NPLs.