In a press release published today, the Central Bank of Cyprus reported a decrease in total new loans to €473.9 million in April 2023, down from €922.5 million in the previous month.

Regarding deposit rates, the Central Bank noted that the interest rate on deposits from households with a maturity of up to one year decreased to 0.41% in April, compared to 0.47% in the previous month. Similarly, the corresponding interest rate on deposits from non-financial corporations registered a decline to 0.73% from 1.12% in the previous month.

Lending rates also experienced changes. The interest rate on consumer credit decreased to 4.85% in April, down from 5.05% in the previous month. Additionally, the interest rate on loans for house purchase decreased to 4.45% compared to 4.67% in the previous month.

In terms of loans to non-financial corporations, the interest rate on loans up to €1 million decreased to 5.31% in April, compared to 5.60% in the previous month. Conversely, the interest rate on loans exceeding €1 million registered a slight increase to 5.41% from 5.29% in the previous month.

In summary, total new loans in April 2023 decreased to €473.9 million, compared to €922.5 million in the previous month. Notably, new loans for consumption decreased to €18 million, down from €30.7 million, and new loans for house purchase recorded a decline to €115.4 million, down from €199.5 million in the previous month.

The Central Bank of Cyprus highlights that new loans to non-financial corporations up to €1 million decreased to €60.1 million, compared to €109 million in the previous month. Similarly, new loans to non-financial corporations exceeding €1 million decreased to €269.3 million, down from €571.2 million in the previous month.

Meanwhile, according to estimates released by Eurostat, the statistical service of the EU, industrial producer prices in Cyprus experienced a slight increase of 0.1% in April 2023 compared to March 2023. However, in the euro area and the EU, these prices declined by 3.2% and 2.9% respectively during the same period.

In March 2023, prices had decreased by 0.3% in Cyprus and by 1.3% in both the euro area and the EU when compared to February.

In comparison to April 2022, industrial producer prices showed positive growth rates in April 2023, with an increase of 12.9% in Cyprus, 1.0% in the euro area, and 2.3% in the EU.

Analyzing the industrial producer prices in the euro area for April 2023, there was a decrease of 10.1% in the energy sector and 0.6% for intermediate goods. However, prices increased by 0.2% for durable consumer goods, 0.3% for non-durable consumer goods, and 0.4% for capital goods. Overall, when excluding energy, prices in the total industry decreased by 0.1%.

In the EU, industrial producer prices exhibited a decline of 8.9% in the energy sector and 0.6% for intermediate goods. Conversely, prices increased by 0.1% for durable consumer goods and by 0.4% for both capital goods and non-durable consumer goods. Similar to the euro area, prices in the total industry, excluding energy, decreased by 0.2%.

Notable monthly decreases in industrial producer prices were observed in Belgium (-9.1%), Italy (-6.5%), and Ireland (-6.3%). On the other hand, Germany (+0.3%), Denmark (+0.2%), as well as Greece, Cyprus, Malta, and Slovenia (all +0.1%) recorded increases.

Comparing industrial producer prices in the euro area for April 2023 to April 2022, non-durable consumer goods experienced the highest increase of 10.9%, followed by durable consumer goods (7.3%), capital goods (6.1%), and intermediate goods (1.3%). However, prices in the energy sector decreased by 8.9%. Excluding energy, prices in the total industry increased by 5.1%.

The highest annual increases in industrial producer prices were observed in Hungary (+41.7%), Latvia (+22.7%), and Slovakia (+18.2%). Conversely, the largest decreases were recorded in Ireland (-21.4%), Greece (-13.1%), and Belgium (-6.8%).