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

by THEFUTURE.TEAM

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.

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.

EU Farm Output Prices Decline For The First Time In Nine Months

by THEFUTURE.TEAM

EU Market Adjustments Signal New Price Trends

Agricultural output prices across the European Union declined in the fourth quarter of 2025, marking a shift after several quarters of increases. Data from Eurostat shows that farm gate prices fell by 1.9% compared with the same period in 2024.

Crisis of Declining Prices In Select Markets

Cyprus recorded one of the more notable decreases in agricultural input costs among EU member states, with prices falling by 2.6% compared with Q4 2024. The reduction eased cost pressures for the local agricultural sector following periods of higher prices earlier in 2025. Across the EU, prices for goods and services consumed in agriculture remained relatively stable. Non-investment inputs such as energy, fertilisers and feedingstuffs showed limited overall changes during the quarter.

Country-Specific Divergence In Price Movements

Eurostat data highlights considerable variation across member states. Fifteen EU countries recorded declines in agricultural output prices. Belgium registered the largest decrease at 12.9%, followed by Lithuania (8.2%) and Germany (6.0%). At the same time, twelve countries reported increases in output prices. Ireland recorded the strongest rise at 6.8%, followed by Slovenia (5.6%) and Malta (4.2%).

Stability In Agricultural Inputs Amid Commodity Shifts

Agricultural input prices also showed mixed developments. Eleven member states recorded declines, including Cyprus (2.6%), Belgium (2.1%) and Sweden (2.0%). Other countries experienced moderate increases, including Lithuania (4.2%), Ireland (3.3%) and Romania (2.5%). Among major agricultural commodities, milk prices declined by 4.1% while cereal prices fell by 8.9% across the EU. In contrast, fertilisers and soil improvers increased by 7.9%, reflecting continued volatility in input markets.

Outlook For EU Agriculture

The latest Eurostat data points to uneven price developments across the EU agricultural sector. While input prices remained broadly stable in many markets, movements in output prices varied significantly between member states. These trends highlight the need for farmers and policymakers to adapt to shifting commodity prices and changing cost structures across the European agricultural market.

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