Deposits held with financial institutions in Cyprus increased by a net €562.3 million in July, while total loans fell by €68.7 million, according to data from the Central Bank of Cyprus (CBC).
The increase in deposits was driven mainly by Cyprus residents, whose holdings grew by €603.2 million. Household deposits rose by €195.7 million, while non-financial corporations added €257.1 million. Deposits held by other domestic sectors increased by a further €150.4 million.
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As a result, the total deposit balance reached €59.2 billion at the end of July, more than twice the outstanding loan balance. The annual growth rate of deposits also accelerated to 6.2%, from 5% in June.
July’s increase was slightly smaller than the €601.2 million net rise recorded in June, but still represented a substantial monthly inflow.
Lending Falls After Strong June Increase
Loan balances moved in the opposite direction, declining by €68.7 million in July after rising by €499.4 million the previous month. Much of the decrease came from €90 million in repayments by residents of other euro-area countries.
Lending to Cyprus residents, meanwhile, edged up by €1.8 million. The modest overall increase reflected contrasting movements among households and businesses: household borrowing rose by €65.7 million, while loans to non-financial corporations fell by €79.6 million. Lending to other domestic sectors increased by €15.8 million, partly offsetting the decline in business lending.
Total outstanding loans stood at €28.3 billion at the end of July. Despite the monthly decline, annual lending growth remained strong at 11.1%, easing only slightly from 11.6% in June.
