Total new bank loans in April declined compared with the previous month, mainly due to the reduction in demand for new corporate loans while new consumer credit increased.
According to the Central Bank of Cyprus (CBC) data, the mortgage rate for new loans on house purchases reached its highest level for two years, while interest on corporate loans up to €1 million rose to a 13-month high.
The interest rate for bank deposits with a fixed term up to one year declined to a new historic low, the CBC said.
In April 2021, total new loans declined to €540 million compared with €611.5 in March.
New consumer credit rose to €21.2 million from €18.3 million in March, while new lending for house purchases declined to €102.3 million compared with €104.6 million in the previous month.
New corporate loans up to €1 million in April declined to €68.6 million from €90.9 million, while total new corporate loans over €1 million declined to €325 million in April compared with €376.8 million in March.
The rate for one-year fixed-term deposits for households declined to 0.07%, a new historic low, from 0.08% in March.
The respective interest rate for deposits from non-financial corporations rose to 0.09% in April from 0,08% in the previous month.
The interest rate for consumer loans rose to 3.05% compared with 2.92% in March, while mortgage rates for housing loans increased to 2.18% in April from 2.17% in March, the highest level since April 2019.
Interest rates for corporate loans up to €1 million rose to 3.35% in April from 3.34%, while interest rates for corporate loans over €1 million declined to 3.27% from 3.37% in March.
Source: Financial Mirror
