Total funds held by depositors at accounts in the system, however, rose 6.4% last month compared to April 2016 against a 5% annual reduction in total outstanding loans, the central bank said in a statement on its website.

The monthly decline in deposits in April was the result of €258.6m in outflows of other financial intermediaries whose deposits fell to €6.3bn, followed by a €22.3m and €10.8m drop in deposits of the general government and insurance companies and pension funds to €942.4m and €2bn respectively, the bank supervisor said. On the other hand, deposits held by non-financial corporations and households rose by €97.8m and €38.5m to €11.4bn and €28.6bn respectively.

Deposits held by domestic non-financial firms and households rose last month by €141.3m and €49.8m compared to March to €7.6bn and €23.2bn respectively, reflecting improved liquidity conditions at home, the central bank said.

The total amount of outstanding loans extended to households and other financial intermediaries declined by €61m and €34m last month compared to March to €22.6bn and €9.1bn. Banks extended €1.6m in fresh credit to non-financial firms, €1.3m to the central government and €0.4m to insurance and pension funds increasing their total liabilities to banks to €22.2bn, €825.9m and €15.5m respectively.

Source: Cyprus Mail