New lending recorded a significant decrease in August 2025, according to data released Thursday by the Central Bank of Cyprus (CBC) on average deposit and lending rates, as well as amounts of new loans. The figures were published in the September 2025 edition of Monetary and Financial Statistics.
The interest rate on household deposits with an agreed maturity of up to one year remained unchanged at 1.08%.
By contrast, the corresponding rate on deposits from non-financial corporations declined to 1.15%, from 1.21% in July.
Lending rates
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The interest rate on consumer credit decreased to 7.09%, compared with 7.40% in the previous month.
The rate on loans for house purchase rose slightly to 3.91%, from 3.87%. The CBC noted that the housing loan portfolio includes different loan types, such as loans for primary residences and holiday homes, which carry varying risks and rates, and this mix affects the weighted average independently of banks’ pricing.
For loans to non-financial corporations, the rate for amounts up to pound 1 million fell to 4.19% (from 4.29%), while the rate for loans over pound 1 million registered a marginal increase to 4.30% (from 4.29%).
New loans
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Pure new loans amounted to pound 245.5 million in August (from a total of pound 420.4 million), compared with pound 445.3 million in July (from a total of pound 743.5 million).
Pure new consumer loans decreased to pound 20.4 million (from a total of pound 21.4 million), compared with pound 24.9 million in July (from a total of pound 26.8 million).
Pure new housing loans fell to pound 96.3 million (from a total of pound 144.1 million), compared with pound 125.1 million in July (from a total of pound 185.9 million).
Pure new loans to non-financial corporations up to pound 1 million dropped to pound 38.1 million (from a total of pound 52.6 million), compared with pound 57.3 million in July (from a total of pound 86.9 million).
Pure new loans to non-financial corporations over pound 1 million decreased sharply to pound 83.9 million (from a total of pound 190.6 million), compared with pound 230.9 million in July (from a total of pound 425.4 million).
It is noted that pure new loans include only new loan contracts, while total new loans also cover renegotiated contracts during the reference month.
Euro area comparison
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Loan interest rates in Cyprus remain close to the euro area median. In August 2025, the interest rate on outstanding household loans stood at 3.98%, compared with 3.95% in the euro area.
For non-financial corporations, the corresponding rate in Cyprus was 4.26%, versus 3.78% in the euro area.