This is the impression created by the Bank Lending Survey published by the Central Bank of Cyprus.

The main reason for the increase in demand for loans in all categories is the drop in the interest rates.

According to the expectations of Cyprus banks for the third quarter of 2016, demand for loans for housing purposes by businesses and households is expected to further increase.

In contrast, demand for loans from households and businesses for consumption loans is expected to stay unchanged. In the Eurozone, demand is expected to increase in all loan categories.

During the third quarter of 2016, demand for business loans is expected to increase significantly in Cyprus, while demand for business loans is expected to increase in the Eurozone as well, albeit at lower levels.

The terms and regulations for providing loans to businesses have remained unchanged compared to the last quarter.

The lower interest rates were compensated by stricter loan terms.

Source: InCyprus