Insider Business Total new loans up 65.4% in December while interest rates drop

Total new loans up 65.4% in December while interest rates drop

Total new loans rose by a monthly 65.4% in December 2018, while lending and deposit rates fell further. According to figures published by the Central Bank of Cyprus on Friday, total new loans rose to €407.6 million, compared to €246.4 million in the previous month.

Loans to non-financial corporations over €1 million recorded the largest increase, to €216.9 million, compared to €91.0 million in the previous month. Of these €195.6 million were pure new loans and €21.3 loans that have been renegotiated.

New loans for house purchase rose to €101.6 million, compared with €82.8 million in the previous month. Of these €96.3 million were pure new loans and €5.3 renegotiated loans.

New loans to non-financial corporations for amounts up to €1 million recorded an increase to €56.1 million, compared to €41.8 million in the previous month, of which €53.5 million were pure new loans.

New loans for consumption decreased to €12.8 million, compared with €13.3 million in the previous month.

Lending rates fall in most categories

Interest rate on consumer credit in December 2018 registered a decrease to 2.92%, compared with 3.49% in the previous month,. Cyprus had the fourth lowest interest rate for consumer loans in the Eurozone after Luxembourg, Spain and Belgium, while Eurozone averages was 4.92%.

The interest rate on loans for house purchase fell to 2.13%, compared with 2.29% in the previous month, while Eurozone average was 1.61%.

The interest rate on loans to non-financial corporations for amounts up to €1 million decreased to 3.41%, compared with 3.53% in the previous month, while the Eurozone average was 1.97%.

The interest rate on loans to non-financial corporations for amounts over €1 million rose to 3.40%, compared with 3.12% in the previous month, and is the third highest Eurozone interest rate in this category after Malta and Greece. The Eurozone average was 1.26%.

Deposit rates fall

The interest rate on deposits from households with an agreed maturity of up to one year registered a decline to 0.40%, compared with 0.54% in the previous month, while the Eurozone average was 0.31%.

The corresponding interest rate on deposits from non-financial corporations recorded a marginal decrease to 0.45%, compared with 0.46% in the previous month and is the third highest in the Eurozone after Greece and Italy. The average Eurozone rate for this category was 0.06%.

(Cyprus News Agency)

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