Depositors, on the other hand, are on the losing side of things, as they see interest rates for their deposits drop, making their savings less profitable than they were a few years ago.

The historically low interest rates, the improvement of macroeconomic conditions and the stabilisation of salaries appear to encourage households to move ahead with housing loans.

At the same moment, businesses are starting to make new moves taking advantage of the low interest rates.

According to data released by the Central Bank, the interest rate for housing loans decreased in March to 2.86%, compared to 2.93% in the previous month.

The fall in the cost of borrowing during the past few years has been astounding.

In one year the decrease was 0.25%, in two years 0.9%, in three years 1.67% and in four years 2.67%.

Cyprus had the highest interest rate for housing loans in 2008, reaching 6.50%. Nine years after entering the eurozone, the cost for housing loans receded 3.64%.

The interest rate for loans to non-companies for amounts up to €1 million marginally decreased to 3.94% from 3.95% in the previous month. In one year the decrease was 0.99%, in two it was 1.88% and in three years 1.97%.

When it comes to the interest rate for companies for amounts above €1 million, it increased in March to reach 3.55%, compared to 3.16% during the previous month. In one year it decreased 0.25%, in two years 0.73%, and in three years 2.27%.

Consumer loan interest rates increased in March, reaching 4.20% compared to 3.49% during the previous month.

There have been large cuts to the interest rate paid by banks to depositors. In March the deposit interest rate with a deadline of one year increased marginally to reach 1.33% compared to 1.32% during the previous month.

Compared to the previous year the decrease is 0.19%. Compared to 2008, the interest rate was 6%, with a cut of 4.67% being recorded.

The interest rate for deposits from companies receded to 1.34% compared to 1.36% during the previous month. The decrease from its high of 4.81% in 2008 is 3.47%.

Source: InCyprus