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Cyprus Interest Rates Reflect Downward Shift Amid ECB Rate Cuts

by THEFUTURE.TEAM

January 17, 2025

Interest rates in Cyprus experienced a general decline in November 2024, mirroring recent rate reductions by the European Central Bank (ECB), according to data from the Central Bank of Cyprus (CBC). However, disparities persist among local financial institutions, with Cyprus continuing to report borrowing rates above and deposit rates below the Eurozone average.

Mortgage Lending: Small Gains For Borrowers

In the mortgage market, the average variable interest rate for home purchases in Cyprus edged down to 4.50% in November from 4.62% in October. Comparatively, the Eurozone average fell to 4.27% from 4.37%. Rates for new variable loans varied widely among Cypriot banks. The Bank of Cyprus recorded the highest rate at 5.20%, followed by Astrobank at 4.85% and Eurobank Cyprus at 4.54%. On the lower end, the Housing Finance Corporation offered 3.53%, and Ancoria Bank provided 3.78%. For renegotiated loans, rates were notably divergent, with the Bank of Cyprus at 5.48% and Eurobank Cyprus offering a significantly lower rate of 2.35%.

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Corporate Loans: Mixed Trends Across Loan Sizes

For corporate loans under €1 million, average rates fell to 5.01% in November from 5.45% in October, while the Eurozone average dipped to 4.74%. Among Cypriot banks, Banque SBA led with the highest rate at 7.54%, while Hellenic Bank and Ancoria Bank offered the lowest rates at 4.55% and 4.35%, respectively. In renegotiations, Hellenic Bank stood out with a rate of 3.42%, the lowest in this category.

Conversely, loans above €1 million saw an increase in rates. The average rate in Cyprus rose to 4.97% from 4.72%, diverging from the Eurozone, where rates decreased to 4.38%. Banque SBA recorded the highest rate at 7.52%, with Hellenic Bank at 6.55%. Lower rates were observed at the Bank of Cyprus (5.07%) and Societe Generale Bank Cyprus (5.15%). For renegotiated large loans, Hellenic Bank offered the lowest rate at 3.29%, down from 4.40% in October.

Deposit Rates: A Steady Decline

Household deposit rates for term deposits up to one year dropped to 1.70% in November, down from 1.76% in October and 1.98% in September. The Eurozone average also fell, landing at 2.61% from 2.74%. Arab Jordan Investment Bank provided the highest household deposit rate at 3%, while the Bank of Cyprus and Hellenic Bank offered the lowest at 0.72% and 1.50%, respectively.

Corporate deposit rates saw a similar downward trend, with one-year term deposits averaging 1.99% in November, down from 2.19% in October. The Eurozone average remained higher at 2.90%. Astrobank led with the highest rate at 2.92%, followed by the National Bank of Greece at 2.54%. Meanwhile, the Housing Finance Corporation reported the lowest rate at 0.22%, alongside the Cyprus Development Bank, which offered 1.59%.

While the ECB’s monetary policy adjustments continue to influence Cyprus’ interest rates, the disparity between local and Eurozone averages highlights ongoing structural challenges. Borrowers and savers alike will need to navigate the

UAE’s Foreign Trade Hits Record $820 Billion In 2024, Fueled By Strategic Deals

by THEFUTURE.TEAM

February 5, 2025

In 2024, the UAE’s foreign trade reached a historic $820 billion (AED 3 trillion), marking a significant achievement for the nation. This milestone was driven by a rise in international trade agreements, with Dubai’s ruler, Sheikh Mohammed bin Rashid Al Maktoum, highlighting the pivotal role these partnerships played in the country’s economic growth.

Strong Trade Growth

The UAE’s foreign trade saw a robust 14.6% year-on-year growth in 2024, a stark contrast to global trade growth of just 2%. Sheikh Mohammed credited the nation’s ongoing efforts to strengthen economic ties globally, with a particular emphasis on the role of UAE President Sheikh Mohammed bin Zayed Al Nahyan, who has worked tirelessly to cultivate stronger international relationships.

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The Impact Of CEPAs

A key contributor to the UAE’s foreign trade success is the implementation of Comprehensive Economic Partnership Agreements (CEPAs). These agreements, spearheaded by Sheikh Mohammed bin Zayed, added an impressive $36.8 billion (AED 135 billion) to the UAE’s non-oil trade in 2024, marking a 42% increase from the previous year. These agreements are helping to cement the UAE’s position as a global trade hub.

Achieving Ambitious Goals Early

In 2021, the UAE set an ambitious target of reaching $1.1 trillion (AED 4 trillion) in foreign trade by 2031. By the end of 2024, the country had already achieved 75% of this goal, putting it on track to surpass this target well ahead of schedule. This rapid progress reflects the UAE’s strong economic vision and strategic focus on progress over politics.

Exports Surge

The UAE’s exports also saw a significant jump in 2024, rising 32% between January and October compared to the same period in 2023. This performance highlights the strength of the country’s industrial strategy and its growing global market access.

Outlook for 2025

The UAE’s economic outlook remains strong, with the International Monetary Fund (IMF) forecasting 4% growth in 2025, driven by non-oil sectors such as tourism, construction, and financial services.

In conclusion, the UAE’s record-breaking trade figures are a testament to its effective economic strategies and its growing influence in global markets.