Cyprus Sees Record €3.9 Billion In New Lending For 2024, Loan Restructurings Drop Sharply

by THEFUTURE.TEAM

February 5, 2025

Cyprus experienced a significant surge in new lending, with total loans issued to businesses and households reaching a record €3.9 billion in 2024, marking an 18% increase from the previous year, according to the Central Bank of Cyprus (CBC).

This figure represents the highest level of new lending since the CBC began recording data in 2014. The rise was predominantly driven by a surge in business loans, which saw the largest annual growth since 2017, while household borrowing also recorded its biggest jump in three years.

Follow THE FUTURE on LinkedIn, Facebook, Instagram, X and Telegram

Business lending was the main contributor, with new loans to businesses climbing by 27%, reaching €2.44 billion in 2024 compared to €1.92 billion in 2023. This was the highest increase in business lending since 2017 when growth hit 43.6%.

Meanwhile, new household loans rose at a slower pace, up by 5.2%, totaling €1.42 billion, compared to €1.35 billion the year before.

In a contrasting trend, loan restructurings dropped sharply in 2024. The total value of restructured loans fell by 30.6% to €2.46 billion, down from €3.55 billion in 2023. Household loan restructurings saw a steeper drop of 36%, falling from €826.5 million to €529.6 million, while restructured business loans decreased by 29%, from €2.73 billion to €1.93 billion.

A significant portion of the new lending was concentrated in December 2024, when net new loans to businesses and households soared to €598 million, an 86.6% increase from December 2023. Business lending accounted for the lion’s share of this surge, with new loans reaching €401.9 million, compared to €150.2 million in the same month the previous year.

The shift in lending patterns reflects broader changes in the economic landscape. While 2023 saw slower business lending and declining household borrowing due to rising interest rates, the second half of 2024 witnessed a drop in rates following European Central Bank monetary policy decisions, encouraging increased lending.

However, concerns have been raised over the growing reliance on consumer loans. The Fiscal Council has warned that rising household borrowing, coupled with a decline in mortgage demand, indicates increasing financial pressure on households. Additionally, the CBC data reveals a growing preference among banks for financing larger businesses, with smaller loans seeing fewer restructurings, which could indicate financial strain for small and medium-sized enterprises (SMEs).

The Fiscal Council’s 2024 report suggests that the rising imbalance in lending patterns between large firms and SMEs may require targeted policy measures to ensure fairer access to financing across the economy.

The Future Forbes Realty Global Properties

Central Bank Of Cyprus Balance Sheet Reflects Strong Eurosystem Position

by THEFUTURE.TEAM

February 17, 2026

Overview Of Financial Stability

The Central Bank of Cyprus (CBC) has released its latest balance sheet, reaffirming its steadfast role within the Eurosystem. The balance sheet, featuring total assets and liabilities of €29.545 billion, underscores the institution’s stable financial posture at the close of January 2026.

Asset Allocation And Strategic Holdings

Governor Christodoulos Patsalides issued the balance sheet, which details the CBC’s asset composition under the Eurosystem framework. Notably, the bank’s gold and gold receivables amounted to €1.635 billion, providing a significant hedge and stability to its balance sheet. Additional asset categories include claims on non-euro area residents denominated in foreign currency at €1.099 billion, while claims on euro area residents in both foreign and domestic currency add further depth to its portfolio.

Follow THE FUTURE on LinkedIn, Facebook, Instagram, X and Telegram

The most substantial asset category, intra-Eurosystem claims, reached €19.438 billion, an indication of the CBC’s deep integration with its European counterparts. Furthermore, euro-denominated securities held by euro area residents contributed €6.587 billion. Despite a marked emphasis on these areas, lending to euro area credit institutions in monetary policy operations recorded no activity during the period.

Liability Structure And Monetary Policy Implications

On the liabilities side, banknotes in circulation contributed €3.218 billion. Liabilities to euro area credit institutions associated with monetary policy operations were notably the largest single category, totaling €17.636 billion. Supplementary liabilities included those to other euro area residents, which aggregated to €4.989 billion, with government liabilities playing a predominant role at €4.754 billion.

Other liability items, such as claims related to special drawing rights allocated by the International Monetary Fund at €494.193 million, and provisions of €596.571 million, further articulate the CBC’s exposure. Revaluation accounts stood at €1.643 billion, and overall capital and reserves were confirmed at €333.822 million, completing the picture of a well-capitalized institution.

Conclusive Insights And Strategic Alignment

The detailed breakdown illustrates the CBC’s sizeable intra-Eurosystem exposures, reinforcing its central role within Europe’s monetary landscape. With an asset-liability balance maintained at €29.545 billion, the CBC’s financial position remains robust, indicating a commitment to structural stability and strategic risk management.

This fiscal disclosure not only provides transparency into the CBC’s operations but also serves as a benchmark for comparative analysis among other central banks within the Eurosystem, highlighting the intricate balance between asset liquidity, regulatory oversight, and monetary policy imperatives.

Breaking news