Insider Business Net new lending declines by 33% in March amid the coronavirus crisis

Net new lending declines by 33% in March amid the coronavirus crisis

Net new lending in Cyprus declined by 33% in March compared with the previous month, affected by lockdown measures to curb the spreading of the coronavirus outbreak, according to data released today by the Central Bank of Cyprus (CBC).

According to the data published by the CBC pure new lending declined to €131 million in March compared with €196 million in the previous month. However, total new lending which includes renegotiated loans declined by only €17 million to €281.7 million due to the inflow to renegotiated corporate loans above €1 million.

Net new consumer lending remained essentially unchanged to €12.5 million in March compared with €12.5 in February, while renegotiated loans amounted to €1.1 million from €2.2 billion the previous month.

Net new loans for house purchase declined to €42.2 million in March from €60.2 million in the previous month, with renegotiated loans amounting to €14.1 million from €19.5 million in February.

According to the CBC, net other loans amounted to €12 million in March from €19.5 million in February, with renegotiated loans remaining unchanged at €3.1 million.

Corporate loans up to €1 million declined to €23.8 million in March from €29.1 million in the previous month, with renegotiated loans remaining relatively stable at €7.1 million from €7.5 million in February.

Net large corporate new lending over €1 million marked a reduction of €34.5 million to €43.5 million. However renegotiated loans jumped to €125.4 million in March compared with €71 million in the previous month.

Furthermore, interest rates for deposits for household with agreed maturity of up to one year declined to 0.11%, compared with 0.14% in the previous month, while the corresponding interest rate on deposits from non-financial corporations remained unchanged at 0.10%, compared with the previous month.

The interest rate on consumer credit decreased to 2.99%, compared with 3.10% in the previous month, while the interest rate on loans for house purchase recorded an increase to 2.10%, compared with 2.04% in the previous month.

According to data by the CBC, the interest rate on loans to non-financial corporations for amounts up to €1 million rose to 3.18%, compared with 3.06% in the previous month, with the interest rate on loans to non-financial corporations for amounts over €1 million increased to 3.05%, compared with 3.00% in the previous month.

(CNA)

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