Cyprus Banking Sector Sees Robust Growth In Deposits And Lending

by THEFUTURE.TEAM

March 27, 2026

Overview Of Banking Performance

Deposits in Cyprus increased by 4.7% year-on-year in February 2026, while loans rose by 12.3%, according to the Central Bank of Cyprus. Data show continued growth in both savings and lending. Monthly figures indicate a rebound in deposits and acceleration in credit activity. Trends reflect demand from households and businesses.

Rising Deposits And Strengthened Liquidity

Total deposits increased by €202.2 million in February, reversing a €851.2 million decline in January. Deposit stock reached €57.2 billion. Household deposits rose by €104.1 million. The increase reflects continued inflows from residents and stable savings activity.

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Accelerated Credit Expansion

Loans increased by €326.2 million in February, compared to €76.4 million in January. Annual growth rate rose from 11.2% to 12.3%. Total loan stock reached €27.3 billion. Data indicate increased borrowing from households and non-financial corporations.

Sector Specific Trends

Loans to Cyprus residents increased by €110 million. Growth included €54.9 million for households and €60.7 million for non-financial corporations. Deposits from non-financial corporations declined by €32.2 million. Other domestic sectors recorded an increase of €178 million.

Conclusion

The latest figures from the CBC indicate that the Cypriot banking system remains resilient, with both deposit growth and credit expansion underpinning stable financial conditions. With robust household savings and strengthened lending to key sectors, the trends observed in February 2026 could lay the groundwork for sustained economic momentum in the near term.

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Cyprus Introduces €200 Million Support Measures To Cut Energy And Food Costs

by THEFUTURE.TEAM

March 27, 2026

Comprehensive Relief Measures For A Resilient Economy

The government of Cyprus introduced support measures exceeding €200 million to reduce household expenses and support key sectors. The package targets energy costs, food prices, tourism and agriculture. Measures come in response to rising costs and supply pressures. Implementation begins in April and May 2026.

Energy And Fiscal Reforms

The government will reduce VAT on electricity for households to 5% from May 1, 2026, to March 31, 2027. The measure is expected to lower energy bills. Special consumption tax on transport fuels will decrease by 8.33 cents per liter between April and June 2026. Policy targets fuel-related costs.

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Broadening The Zero VAT Initiative

Authorities will expand the list of products with zero VAT. Meat, poultry and fish will be included from April 1 to September 30, 2026. Existing zero-VAT categories already include fruits and vegetables. The government also decided not to introduce a green tax on fuels, avoiding an additional cost of about 9 cents per liter.

Sector-Specific Supports

The package includes a 30% wage subsidy for hotel employees for April 2026. Measure supports tourism businesses during the early season. Support for airlines aims to maintain connectivity with key destinations. The agriculture sector will receive subsidies covering 15% of costs for fertilizers and supplies in April and May.

Economic Stability, National Security

President Nikos Christodoulidis said economic stability remains a priority for the government. He noted that growth, fiscal balance and inflation trends support current policy decisions. Statement links economic policy with broader national priorities. The government continues to monitor external risks.

Ensuring Consumer Protection

Furthermore, the government has mandated rigorous market oversight and intensified inspections to prevent exploitative pricing during this period of economic intervention. This proactive stance ensures that the benefits of the measures directly serve the citizens without unintended inflationary impacts.

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