Robust Increase In New Loans
New loan figures reported for Cyprus in September 2025 reached an impressive €447.9 million, up from €245.5 million in August, according to data from the Central Bank of Cyprus. This significant rise underscores a pronounced boost in lending activity, predominantly geared toward business financing.
Segment-Specific Growth And Dynamics
The detailed statistics reveal that net new loans to non-financial companies totaled €309.4 million. Within this segment, loans up to €1 million accounted for €62.7 million, while larger loans exceeding €1 million reached €246.7 million. Housing loans also witnessed a notable increase, climbing to €112.9 million from €96.3 million in the previous month. Meanwhile, consumer loans experienced a marginal upward adjustment, moving from €20.4 million in August to €21.2 million. Overall, the aggregate of new loans—including debt restructurings—soared to €770.5 million compared to €420.4 million the prior month.
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Shifting Interest Rate Trends
Interest rate movements further illuminate current market dynamics. In the lending segment, consumer loan rates declined from 7.09% to 6.46%, while housing loan rates eased from 3.91% to 3.63%. Conversely, rates for small enterprises edged upward from 4.19% to 4.32%, and loans exceeding €1 million saw a reduction from 4.30% to 3.79%.
On the deposit front, the average fixed deposit interest rate for households experienced a slight increase from 1.08% to 1.10%, with non-financial companies recording an improvement from 1.15% to 1.24%.
Comparative Insights With The Eurozone
When benchmarked against other Eurozone member states, Cyprus’s loan interest rates remain closely aligned with the European average: household loans stand at 3.93% compared to 3.91%, and business loans are reported at 4.22% versus 3.80%. However, deposit interest rates in Cyprus remain substantially lower, with households earning just 0.78% compared to 1.74% across the Eurozone, and non-financial companies receiving 1.08% as opposed to 1.94%.
The evolving lending landscape in Cyprus reflects broader economic trends and underscores the resilience of the market, as financial institutions adjust to shifting demand and interest rate environments. These developments will be critical to watch as they continue to influence both business financing and consumer deposit markets in the region.
