CBC: Decline in New Loans and Mixed Interest Rate Trends

According to data released by the Central Bank of Cyprus, mixed trends were recorded in deposit and loan interest rates in Cyprus in July 2025. At the same time, net new loans decreased compared to June, while interest rates remain close to the Eurozone average.

The interest rate for household time deposits up to one year decreased to 1.08% from 1.13% in June. Conversely, for non-financial corporations, it increased to 1.21% from 1.18%.

Regarding loans, the interest rate for consumer loans increased to 7.40%, while for mortgage loans it decreased to 3.87%. For loans to non-financial corporations up to €1 million, the interest rate decreased to 4.29%, while for amounts over €1 million it increased to 4.29%.

Net new loans amounted to €445.3 million, compared to €642.8 million in June. Consumer loans increased, while mortgage loans and loans to companies decreased.

Compared to the Eurozone, the average interest rate on existing loans to households in Cyprus was 4.05%, close to the Eurozone's 3.96%. The average interest rate to non-financial corporations was 4.31%, higher than the Eurozone's 3.79%.