Cyprus net new lending rose sharply in December as borrowing strengthened, CBC data show

Nicosia, Cyprus. Net new lending in Cyprus accelerated in December as borrowing activity strengthened at the end of the year, according to Central Bank of Cyprus data. Deposit rates rose for households and businesses, while loan rates moved in different directions across categories.

Overall lending volumes

Net new loans rose by €368.7 million month-on-month to €625 million, out of total new lending of €986.9 million, compared with €256.3 million out of €565.2 million in November.

Consumer and housing lending

Net new consumer loans fell to €17.2 million, from €20.4 million the previous month. Total new consumer lending was €18.2 million in December, compared with €23.4 million in November.
Net new loans for house purchase increased to €135.4 million, up from €113.4 million in November. Total new housing lending was €178.1 million in December, compared with €155.7 million in November.

Corporate lending

Loans to non-financial corporations of up to €1 million rose to €60.3 million from €48.3 million. Total new lending in this category was €92.5 million in December, compared with €59.6 million in November.
Net new lending to larger non-financial corporations increased to €406.4 million from €69.6 million, with total new lending of €685 million in December compared with €320.8 million in November.

Deposit and loan interest rates

The interest rate for household time deposits of up to one year increased to 1.2% from 1.13%, while the corresponding rate for non-financial corporations rose to 1.27% from 1.17%.
The interest rate on consumer loans increased to 7.22% from 6.95%. The CBC said consumer-loan rates increased while housing-loan rates eased, and that interest rates on new loans in Cyprus remain broadly comparable with the eurozone median.

How do changes in loan and deposit rates affect your borrowing or saving decisions?