Breaking news

Cyprus Central Bank Data Show Stronger June Growth In Deposits And Lending

by THEFUTURE.TEAM

Banking Activity Accelerates In June

Banking activity in Cyprus accelerated in June, with both deposits and lending recording stronger monthly gains, according to new figures from the Central Bank of Cyprus (CBC). While annual growth eased slightly, the data indicate continued strength in household deposits and business borrowing.

Deposits Rise On Strong Resident Inflows

Total deposits increased by a net €601.2 million in June, compared with €343.8 million in May. The annual growth rate edged down to 5.0% from 5.1% a month earlier.

By the end of June, total deposits stood at €58.7 billion, with Cyprus residents accounting for most of the monthly increase. Resident deposits rose by €626.2 million during the month.

Household deposits increased by €49.7 million, while deposits held by non-financial corporations grew by €480.3 million. Other domestic sectors contributed a further €96.2 million.

Lending Continues To Expand

Total lending increased by a net €499.4 million in June, almost doubling May’s net increase of €260.3 million. Despite the stronger monthly performance, the annual lending growth rate slowed to 11.6% from 12.6%.

Outstanding loans reached €28.6 billion at the end of June.

Loans to Cyprus residents rose by €213.7 million, including a €131.4 million increase in household lending and a €90.1 million rise in lending to non-financial corporations. Lending to other domestic sectors declined by a combined €7.8 million.

Credit Growth Remains Resilient

June’s figures point to continued momentum in Cyprus’ banking sector, with stronger monthly growth in both deposits and lending despite a modest slowdown in annual growth rates. The data suggest households continue to build savings while businesses maintain demand for financing.

Morningstar DBRS Upgrades Cyprus Outlook To Positive, Citing Strong Fiscal Performance

by THEFUTURE.TEAM

Cyprus President Nikos Christodoulides welcomed the confirmation of the country’s “A” credit rating and an upgrade in its outlook, saying the decision reflects the economy’s momentum and prospects.

In a post on X, Christodoulides said Cyprus is continuing on an upward path while advancing reforms aimed at strengthening competitiveness, resilience and credibility.

Fiscal Discipline Supports Investor Confidence

The rating decision points to the role of fiscal policy in Cyprus’ improving credit profile. Credit ratings remain an important indicator of a country’s institutional strength, borrowing capacity and macroeconomic stability.

For Cyprus, stronger public finances could support investor confidence and improve access to financing over time. A stronger credit outlook may also give the government more flexibility to support economic growth while maintaining fiscal discipline.

Reforms And Growth Create More Policy Space

Christodoulides said responsible fiscal policy and the government’s broader economic strategy are producing measurable benefits, including more and better-paid jobs, higher disposable income and new investment.

He added that these improvements are creating greater policy space to address citizens’ needs while continuing reforms designed to strengthen the economy.

Government Plans To Maintain Course

Christodoulides said his administration would continue pursuing its economic strategy with a focus on responsibility, consistency and reforms aimed at building a more competitive and resilient economy.

The latest rating action adds to recent evidence of improved fiscal conditions and Cyprus’ stronger position in international financial markets.

The Future Forbes Realty Global Properties
Uol
eCredo
Aretilaw firm

Become a Speaker

Become a Speaker

Become a Partner

Subscribe for our weekly newsletter