Business deposits in Cyprus are rising every year, creating a liquidity buffer and confirming a positive sentiment – at least in some sectors of the economy. The same, however does not apply to household deposits, according to data released by the Central Bank of Cyprus.
Households are finding it hard to put aside savings from their disposable income, and this is probably because of the big challenge of paying back existing debt.
The CBC data compares the state of play between 2019 and 2013 — the year of the haircut on deposits.
Deposits by business people residing in Cyprus stood at €9.19 billion at the end of 2019 compared with €8.75 billion in the same period in 2018, marking a rise of €437 million within a year
Deposits of small and large businesses within two years (end of 2017) increased by €931 million.
Compared to 2014, business deposits increased by €3.88 billion and by €3.5 billion when compared to 2013.
On the other hand, the growth in domestic household deposits is slow. Six years after the haircut in 2013 and the overall picture has not changed significantly.
At the end of 2019, bank savings were €23.83 billion from €23.26 billion in 2013, up by €568 million. Insurance and pension fund deposits do not appear to have changed significantly.
At the end of 2019, these stood at €1.63 billion from €1.68 billion in 2018. Compared to 2013, these need to increase by €551m to reach pre-haircut standards.