The Central Bank of Cyprus published monetary financial institution interest-rate and lending data for June 2026, showing net new loans increased to EUR 626.2 million from EUR 361.9 million in May. Total new lending, including renegotiated contracts, rose to EUR 831.3 million from EUR 594.5 million. The increase was driven mainly by net new loans above EUR 1 million to nonfinancial corporations, which climbed to EUR 387.5 million from EUR 121.5 million. For new and renegotiated business, household deposits with maturities of up to one year rose to 1.42% from 1.25%, while the equivalent corporate deposit rate increased to 1.41% from 1.31%. Consumer lending rates fell to 6.50% and housing loan rates edged down to 4.04%. Corporate lending rates increased to 4.32% for loans up to EUR 1 million and 4.07% for larger loans. The central bank found that Cyprus loan rates were broadly comparable with euro area medians, but deposit rates remained among the lowest in the bloc, potentially reflecting high banking-system liquidity and the market’s limited size. The share of new housing loans carrying a variable rate or an initial fixed-rate period of up to one year fell to 10.9% from nearly 100% in early 2022, a shift the central bank said should be reflected in banks’ risk management policies.
Central Bank of Cyprus2026-08-03
Central Bank of Cyprus reports net new lending rose to EUR 626.2 million in June
The Central Bank of Cyprus reported that net new lending rose to EUR 626.2 million in June, driven mainly by loans above EUR 1 million to nonfinancial corporations. Deposit rates increased, consumer and housing loan rates declined, and corporate borrowing rates rose. Cyprus loan rates were broadly aligned with euro area medians, while deposit rates remained among the bloc’s lowest.