The Central Bank of Cyprus (CBC) published detailed figures on Monday regarding interest rates at Monetary Financial Institutions across the island for October 2024. The data highlights significant trends in mortgage loans, business loans, and deposit rates.
Mortgage Loan Rates
In October 2024, the average interest rate for new housing loans with floating rates and an initial fixed period of up to one year increased slightly to 4.55%, up from 4.49% in September. In contrast, the eurozone saw a slight decline, with the average rate dropping to 4.37%.
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Among local banks, Bank of Cyprus Public Company Ltd had the highest rate at 5.20%, while Alpha Bank Cyprus Ltd offered the lowest at 3.34%, a rise from 2.90% the previous month.
Hellenic Bank Public Company Ltd reduced its rate to 3.68% from 4.12%. Meanwhile, Ancoria Bank Ltd’s rate increased slightly to 4.39%, up from 4.28%, and Eurobank Cyprus Ltd saw its rate rise to 5.11% from 4.99%.
The overall average rate for housing loans, including renegotiations, climbed to 4.62% in October, up from 4.53% in September, while the eurozone average dropped to 4.37% from 4.59%.
Business Loan Trends
Interest rates for new business loans of up to €1 million with floating rates and an initial fixed period of up to one year saw a modest decline to 5.58% in October, down from 5.62% in September.
Alpha Bank Cyprus Ltd experienced the most significant increase, with its rate rising to 9.04% from 6.35%, the highest among local banks. Ancoria Bank Ltd offered the lowest rate at 4.80%, down from 5.02%.
Other banks showed stability or slight changes. Bank of Cyprus maintained its rate at 5.78%, and Hellenic Bank’s rate edged up to 4.94%, from 4.92%.
The overall average for new business loans, including renegotiations, dropped to 5.45% in October, down from 5.59% in September. In the eurozone, the average rate also decreased to 4.83%, from 5.03%.
A more notable decline was observed in the rates for business loans exceeding €1 million, with the average falling to 4.72% in October, down from 5.26% in September. The eurozone followed this trend, with rates decreasing to 4.58% from 4.67%.
Eurobank Cyprus Ltd reported the highest rate for loans over €1 million at 5.24%, while the National Bank of Greece (Cyprus) Ltd offered the lowest rate at 4.07%.
As for new contracts between Cypriot banks, October saw the following adjustments: Alpha Bank Cyprus Ltd lowered its rate to 5.28% from 5.43%, National Bank of Greece (Cyprus) dropped to 4.07% from 5.59%, Hellenic Bank decreased to 5.21% from 5.53%, Eurobank Cyprus Ltd fell to 5.24% from 5.40%, Cyprus Development Bank decreased to 4.80% from 5.16% (in August), and Bank of Cyprus reduced its rate to 5.19% from 5.32%.
Fixed-Term Deposit Rates
The average interest rate for new fixed-term deposits up to one year for households in Cyprus declined to 1.76% in October, from 1.98% in September. In comparison, the eurozone saw a drop to 2.74%, down from 2.97%.
The National Bank of Greece (Cyprus) recorded the highest rate at 2.48%, while the Bank of Cyprus had the lowest rate at 1.32%, a slight increase from 1.19%.
Eurobank Cyprus Ltd saw the largest decrease, with its rate falling to 2.07% from 2.83%.
For non-financial corporations, the average rate on fixed-term deposits up to one year rose to 2.19%, up from 2.14% in September. The eurozone average remained considerably higher at 3.06%, down from 3.28%.
Astrobank Public Co Ltd reported the most significant rise, with its rate increasing to 3.11% from 2.45%. In contrast, the Housing Finance Corporation had the lowest rate at 1.01%, a decrease from 1.74%.
