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Cyprus Credit Availability Stays Stable As Household Loan Demand Grows

by THEFUTURE.TEAM

September 2, 2026

Cyprus banks entered the second quarter of 2026 with lending standards largely unchanged, even as household demand for credit continued to strengthen and uncertainty in the Middle East weighed on some corporate investment plans, according to the Central Bank of Cyprus (CBC).

Credit Conditions Hold Steady Across Borrowing Categories

Standards for loans to companies and households, including housing loans and consumer credit, were unchanged from the previous quarter. The CBC survey found that the factors shaping credit standards across all loan categories had a neutral effect during the period.

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That result diverged from earlier bank expectations, which had pointed to some tightening. Instead, lending conditions remained broadly stable for businesses, small and medium-sized enterprises, large corporations, mortgage borrowers and consumers alike.

For businesses, credit standards have remained at relatively tight levels since the second quarter of 2024. Housing loan standards have been unchanged since the first quarter of 2024, while consumer credit conditions have also held steady since then.

Banks expect that stability to continue in the third quarter of 2026.

Loan Terms Also Show Little Movement

The overall terms and conditions attached to new business loans were unchanged in the second quarter, following a tightening in the previous quarter. Individual lending terms were broadly stable, and the factors influencing those terms had no meaningful impact.

New housing loans followed a similar pattern. Overall terms were unchanged for a fifth consecutive quarter, although lending rates rose in part because of previous increases in European Central Bank policy rates. Other mortgage conditions were flat, with no significant shift in the factors affecting them.

Consumer credit and other household lending also remained broadly unchanged for a fifth straight quarter. The CBC said that this stability in consumer lending conditions signals continued momentum in private consumption, which remains supportive of broader economic activity.

The share of rejected loan applications, whether formal or informal, was unchanged across all loan categories, reinforcing the picture of a stable credit environment.

Business Demand Softens In Key Sectors

On the demand side, overall business borrowing was unchanged in the second quarter, even as financing needs for fixed investment declined. The drop was driven mainly by large companies, with the sharpest declines reported in tourism and energy.

In tourism, weaker demand may reflect mounting uncertainty tied to the ongoing crisis in the Middle East. In energy, the slowdown was linked to investment in renewable projects and concerns about expected returns, including limits on the electricity grid’s capacity to absorb additional output.

Demand from SMEs, by contrast, remained unchanged during the quarter.

Households Continue To Borrow More

Household demand moved in the opposite direction. Demand for housing loans increased further in the second quarter, outpacing banks’ April expectations that it would remain flat.

According to the CBC, the rise was supported by relatively high interest rates by historical standards, as well as improving conditions in the housing market. The increase appears to have been driven by both owner-occupied homes and properties bought for rental income.

Demand for consumer credit and other household lending also rose for a third consecutive quarter, once again beating banks’ expectations. The increase was attributed to stronger spending on durable goods and improved consumer confidence. The survey also points to supportive labour market conditions as a factor underpinning household borrowing.

Outlook For The Third Quarter

Looking ahead, banks expect business loan demand to remain unchanged in the third quarter of 2026. Household demand, however, is projected to keep rising for both housing loans and consumer credit.

The latest survey suggests that Cyprus’s lending market entered the second half of 2026 with little change in overall credit availability, but with a clearer divide between cautious corporate borrowers and more active households.

Companies remain restrained by geopolitical risk and infrastructure-related constraints, while households continue to show a stronger appetite for property-related borrowing and consumer finance.

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NERDs Replace FIRE As Young Workers Lose Confidence In Retirement

by THEFUTURE.TEAM

September 4, 2026

The FIRE movement promised younger workers a path to financial independence and early retirement. Now, a different group is emerging in the UK: NERDs, or the “Never Ever Retiring Demographic.”

Growing pessimism among Gen Z and millennials is driving the shift, with many questioning whether retirement will ever be financially achievable. Some are responding by reducing or abandoning pension contributions altogether.

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Young Workers Are Losing Confidence In Retirement

Research from People’s Pension, a major UK workplace pension provider, found that 47% of Gen Z respondents aged 18 to 27 do not engage with their pension. Another 12%, equivalent to about 2.2 million young people, have stopped saving for retirement because they expect to work indefinitely.

Wider financial pressures are contributing to that outlook. High living costs have pushed milestones such as homeownership, marriage, having children and retirement further away for many younger workers, while inflation, layoffs and stagnant wages have added to uncertainty.

Pension Providers Face A Communication Gap

Financial pressure is only part of the problem. Young workers also say pension providers are failing to explain long-term saving in ways that feel relevant to them.

About 36% of respondents said providers do not explain retirement saving effectively. Among them, 27% said companies appear more focused on selling products than educating customers, while 16% cited complicated language and jargon.

A clear generational difference emerges in the responses. Some 29% of Gen Z respondents said providers fail to explain why pension saving matters, compared with 13% of Gen Xers and Baby Boomers. Similarly, 17% of Gen Z said providers do not use channels they engage with, versus 4% among older generations.

Clearer information could influence behavior. About 70% of Gen Z respondents said they would have started saving earlier if they had known that beginning in their 20s could potentially double their retirement pot compared with starting in their 30s. Another 63% said learning about tax relief and employer contributions motivated them to save.

“In a world where financial doom dominates pension conversations, young savers are tuning out,” said Kirsty Ross, proposition director at People’s Pension. “Our research shows they are not disengaged because they don’t care, they are disengaged because the messages aren’t working.”

Young Savers Want Simpler Tools

Progress bars and goal trackers were among the most popular tools respondents said could make pensions more relevant, cited by 31%. Another 26% wanted reassurance that they could start with small amounts, while 23% wanted examples of what people their age are doing.

Clear, bite-sized steps were cited by 22%, while 19% said light-hearted and relatable stories could make pensions more accessible.

People’s Pension has responded with Pension Drop, a campaign using social media influencers, live events and lifestyle personalities to encourage conversations about retirement saving.

“Looking back, I really wish I’d started earlier,” said Iain Stirling, comedian, TV presenter and Pension Drop ambassador. He said contributions made in someone’s 20s or 30s can make a significant difference later, while employer contributions and tax relief can increase the value of smaller payments.

Small Changes Can Improve Long-Term Saving

Stirling urged younger workers to check their pension provider, establish whether they have multiple pension pots and make sure they are contributing enough to receive the full employer match.

He also recommended increasing contributions after a pay rise or bonus, allowing workers to raise long-term savings without making a large immediate change to their spending.

For younger workers facing high living costs and uncertain career prospects, pension saving remains a difficult sell. Clearer information about employer contributions, tax relief and the long-term effect of starting early could help make retirement planning more tangible.