Loans rise as interest rates rise, KNEWS
New loans granted by Cypriot banks increased by 217 million euros in September compared to August, driven mainly by business loans above 1 million euros, which increased by 127.6 million.
In addition, consumer credit interest rates reached a 4-year high and mortgage and business loan rates up to 1 million euros reached a 6-year high, in the framework of the normalization of the monetary policy of the ECB.
According to data published by the Central Bank of Cyprus (CBC), total new loans in Cyprus in September amounted to 478.3 million euros, compared to 261.3 million euros the previous month.
Consumer loans amounted to 15.6 million euros in September against 12.3 million euros the previous month, while housing loans increased to 102.9 million euros against 79, 2 million euros in August.
New business loans up to 1 million euros amounted to 54.1 million euros in September compared to 30.7 million the previous month, while new business loans above 1 million euros s amounted to 295.9 million euros against 132.3 million euros the previous month.
Interest rates continue to rise
Interest rates for households with maturities of up to one year rose to 0.11% in September, from 0.06% the previous month, reaching their highest level since July 2020.
Rates applied to deposits from non-financial corporations fell to 0.09% from 0.13% in September.
According to data from the CBC, interest rates on new consumer loans rose to 3.59% in September from 3.36% the previous month, the highest level since October 2018.
Interest rates on new mortgages rose to 3.06% in September from 2.56% the previous month, reaching their highest level since June 2016.
Interest rates on business loans up to 1 million euros rose to 4.13% in September from 3.85% the previous month, marking a new high since August 2016.
According to the CBC, interest rates on new business loans above €1 million rose to 3.69% in September from 3.69% the previous month.