Nicosia, Cyprus. The Central Bank of Cyprus (CBC) said interest rates on new housing loans declined in March, while borrowing costs for businesses remained above the euro area average. The bank also reported that deposit rates for households and businesses in Cyprus stayed below eurozone levels.
Household deposits below euro area average
For household term deposits with a maturity of up to one year, the weighted average interest rate stood at 1.18 per cent, compared with 1.82 per cent in the euro area.
Among banks, the National Bank of Greece (NBG) Cyprus offered around 1.57 per cent, while the Bank of Cyprus provided approximately 0.87 per cent. Eurobank Cyprus and Alpha Bank Cyprus offered 1.17 per cent and 1.39 per cent, respectively.
Corporate deposit rates rise but remain under eurozone level
For non-financial corporations, the average deposit rate rose to 1.39 per cent in March, still below the eurozone level of 1.94 per cent.
Ancoria Bank offered 1.51 per cent and the National Bank of Greece Cyprus offered 1.55 per cent. Alpha Bank Cyprus’ rate stood at 1.24 per cent, while the Bank of Cyprus’ rate was 1.40 per cent. The Housing Finance Corporation recorded 0.66 per cent.
New housing loan rates decline
In the housing loan segment, the average interest rate for new loans declined to 3.09 per cent, compared with 3.40 per cent in the euro area.
Eurobank Limited offered 3.06 per cent, while the Bank of Cyprus stood at 3.20 per cent and the Housing Finance Corporation at 3.37 per cent.
How do the reported deposit and housing loan rates affect your saving and borrowing decisions?
