According to the Central Bank of Cyprus (CBC) data, pure new lending declined to €131 million in March compared with €196 million in February.

However, total new lending which includes renegotiated loans declined by only €17 million to €281.7 million due to the inflow of renegotiated corporate loans above €1 million.

Pure new consumer lending remained essentially unchanged at €12.5 million in March.

New loans for house purchases declined to €42.2 million in March from €60.2 million in the previous month, with renegotiated loans amounting to €14.1 million from €19.5 million in February.

Corporate loans up to €1 million declined to €23.8 million in March from €29.1 million in the previous month, with renegotiated loans remaining relatively stable at €7.1 million from €7.5 million in February.

Large corporate new lending over €1 million marked a reduction of €34.5 million to €43.5 million.

However, renegotiated loans jumped to €125.4 million in March compared with €71 million in the previous month.

Furthermore, interest rates for deposits for households with an agreed maturity of up to one year declined to 0.11%, compared with 0.14% in the previous month, while the corresponding interest rate on deposits from non-financial corporations remained unchanged at 0.10%.

The interest rate on consumer credit decreased to 2.99%, compared with 3.10% in the previous month, while the interest rate on loans for house purchases recorded an increase to 2.10% from 2.04% in the previous month.

The interest rate on loans to non-financial corporations for amounts up to €1 million rose to 3.18%, compared with 3.06% in the previous month, with the interest rate on loans to non-financial corporations for amounts over €1 million increased to 3.05% from 3%.

Source: Financial Mirror