Insider Economy Liquidity of Cyprus banks at 2008 levels

Liquidity of Cyprus banks at 2008 levels

Liquidity of banks in Cyprus is restored to April 2008 levels when no financial crisis was looming, according to Central Bank of Cyprus data.

The data also shows that there was a significant decline in non-performing loan portfolios in banks which have deleveraged through real estate swaps. The state of play in banks has changed significantly since 2013 with liquidity tightness turning into surplus.

With liquidity at satisfactory and in some cases excessive levels, banks are now stepping up efforts to channel money especially towards housing loans. Loan schemes on the market focus on purchase, construction, completion or refurbishment of a home or apartment or even the transfer of an existing mortgage.

Banks give a grace period of up to two years before the loan’s first disbursement, as well as the possibility of granting additional credit facilities to meet personal or consumer needs.

Interest rates offered by banks are fixed or floating and start at less than 2%. Instalments are low, starting from €300 per month. According to the data of the Central Bank, there was an overall €13 billion decrease in loans over the last year and an overall decrease of €1.7 billion in deposits.

In February this year, bank deposits outperformed loans by €9.5 billion against a negative deviation of €1.9 billion which was the difference a year ago. It is no coincidence that the Cypriot banking system recorded the second highest liquidity coverage index within Eurozone.

Its liquidity coverage ratio in the fourth quarter of 2018 is 311%, far exceeding 146% which is the Eurozone average and about three times the 100% set by the Basel III Directive.


Read more:


Top Stories

Can you catch COVID-19 from delivered packages?

An outbreak of COVID-19 at a logistics centre run by one of South Korea's largest online shopping companies has raised concerns over whether the...

Limassol: Post-mortem inconclusive on cause of death of unknown man

  A post-mortem carried out on a body found in an advanced stage of decomposition in Limassol last week has failed to shed light on...

Greens: ‘Criminal pruning’ in the heart of Nicosia (photos)

The Green Party issued an announcement on Tuesday condemning what it called another "criminal pruning" of trees on Pindarou Street in Nicosia Municipality. "It is...

National Guard exercise underway, no reservists participating

“Nikitis-Dimitra 2020” National Guard exercise started on Tuesday and will wrap up on Friday, for the first time without the participation of reservists, Defence...

EY: Renewable energy sector expected to bounce back quickly despite impact of Covid-19

Despite the global slowdown caused by COVID-19, the renewable energy sector is expected to bounce back quickly as the long-term drivers for investment remain...


Poulles (Υoung kolokassi)

Either you thrash the coriander seeds in a mortar, without making them into dust, or you gradually crush them in a blender. Remove the edges...

Pork cooked in wine

Crush the coriander seeds in a pestle and mortar or pulse-blend in a blender, taking care not to over-grind. Put the meat in bowl (not...

Lefkaritikos tavas – O ‘protinos’

Wash and dry the meat and rice separately. In a ‘tava’ (oven proof deep clay pot) first put a layer of five-six pieces of meat...

Local cuisine: An introduction

Rich in fresh ingredients and tasty herbs, offers the very best of Mediterranean culinary delights. Head out to a tavern and feast on a...