Total loans in the Cyprus banking system declined by €288 million in February, marking their first significant reduction as borrowers began repaying their loans following the ending of a general payment holiday in December 2020, while a new moratorium has limited effect.
According to data released by the Central Bank of Cyprus, total loans in February 2021 recorded a net decrease of €288 million, compared with a net increase of €2.8 million in January 2021.
The annual growth rate stood at 2.1%, compared with 3.1% in January 2021, with the outstanding amount of total loans reached €31.5 billion, the CBC said.
The CBC noted that the suspension of instalments, according to the new Decree for the suspension of loan instalments by the Minister of Finance, issued in January 2021, had a minor upward impact on the above changes in loans, the new moratorium relates to loans households and non-financial corporations amounting to just €55.2 million.
Furthermore, total deposits in February 2021 recorded a net decrease of €92.4 million, compared with a net decrease of €349.3 million in January 2021.
The annual growth rate stood at 0.2%, remaining unchanged compared with January 2021, with the outstanding amount in February 2021 at €47.9 billion, the CBC said.