Breaking news

Decline In Business Loans Amidst Economic Uncertainty

by THEFUTURE.TEAM

July 15, 2024

The latest data from the Central Bank of Cyprus indicates a notable decline in the issuance of new business loans during the first five months of 2024. The reduction is largely attributed to the prevailing high interest rates and overarching economic uncertainties, which have deterred businesses from taking on new debt.

Decrease in Loan Issuance

New business loans amounted to €814 million from January to May 2024, marking a significant drop from €971 million during the same period in 2023, representing a decrease of 16.1%. This downward trend contrasts with the increase in loans to households, which rose by 6% to €556 million, up from €524 million in the previous year.

Follow THE FUTURE on LinkedIn, Facebook, Instagram, X and Telegram

Factors Influencing the Decline

The economic environment in Cyprus has been characterised by heightened interest rates, making borrowing more expensive and less attractive for businesses. Additionally, the broader economic uncertainties have prompted companies to adopt a more cautious approach, opting to restructure existing debts rather than seek new loans. The data reflects a broader trend where businesses are focusing on managing their current financial obligations in a volatile economic climate.

Restructuring Over New Borrowing

The preference for debt restructuring over new borrowing is evident from the data. Business loan restructurings decreased to €731.1 million from €951.7 million in 2023. This decline indicates a strategic shift among businesses towards consolidating and managing existing debts instead of expanding their borrowing.

Household Loans on the Rise

In contrast to the business sector, household loans have shown resilience and growth. The increase in household loan issuance suggests a stable demand for personal and residential financing. This growth may be supported by favourable government policies and economic measures aimed at boosting consumer confidence and spending.

Implications and Future Outlook

The decline in business loans could have significant implications for the Cypriot economy. Reduced borrowing can lead to lower investment in business expansion and innovation, potentially impacting economic growth. However, the focus on debt restructuring may lead to healthier balance sheets and more sustainable financial practices in the long run.

The Future Forbes Realty Global Properties

Cyprus Emerges As A Leading Household Consumer In The European Union

by THEFUTURE.TEAM

June 30, 2025

Overview Of Eurostat Findings

A recent Eurostat survey, which adjusts real consumption per capita using purchasing power standards (PPS), has positioned Cyprus among the highest household consumers in the European Union. In 2024, Cyprus recorded a per capita expenditure of 21,879 PPS, a figure that underscores the country’s robust material well-being relative to other member states.

Comparative Consumption Analysis

Luxembourg claimed the top spot with an impressive 28,731 PPS per inhabitant. Trailing closely were Ireland (23,534 PPS), Belgium (23,437 PPS), Germany (23,333 PPS), Austria (23,094 PPS), the Netherlands (22,805 PPS), Denmark (22,078 PPS), and Italy (21,986 PPS), with Cyprus rounding out this elite group at 21,879 PPS. These figures not only highlight the high expenditure across these nations but also reflect differences in purchasing power and living standards across the region.

Follow THE FUTURE on LinkedIn, Facebook, Instagram, X and Telegram

Contrasting Trends In Household Spending

The survey also shed light on countries with lower household spending levels. Hungary and Bulgaria reported the smallest average expenditures, at 14,621 PPS and 15,025 PPS respectively. Meanwhile, Greece and Portugal recorded 18,752 PPS and 19,328 PPS, respectively. Noteworthy figures from France (20,462 PPS), Finland (20,158 PPS), Lithuania (19,261 PPS), Malta (19,622 PPS), Slovenia (18,269 PPS), Slovakia (17,233 PPS), Latvia (16,461 PPS), Estonia (16,209 PPS), and the Czech Republic (16,757 PPS) further illustrate the disparate economic landscapes within the EU. Spain’s figure, however, was an outlier at 10,899 PPS, suggesting the need for further data clarification.

Growth Trends And Economic Implications

Eurostat’s longitudinal analysis from 2019 to 2024 revealed that Croatia, Bulgaria, and Romania experienced the fastest annual increases in real consumer spending, each growing by at least 3.8%. In contrast, five member states, with the Czech Republic experiencing the largest drop at an average annual decline of 1.3%, indicate a varied economic recovery narrative across the continent.

This comprehensive survey not only provides valuable insights into current household consumption patterns but also offers a robust framework for policymakers and business leaders to understand economic shifts across the EU. Such data is integral for strategic decision-making in markets that are increasingly defined by evolving consumer behavior and regional economic resilience.