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Decline In Net New Loans In Cyprus Highlights November 2025 Financial Trends

by THEFUTURE.TEAM

January 8, 2026

According to the latest report published by the Central Bank of Cyprus, net new loans in Cyprus experienced a notable decline in November 2025. The total net new loans dropped to €256.3 million from overall new loans of €565.2 million, compared with €429.4 million from total new loans of €624.9 million in the preceding month.

Detailed Financial And Statistical Overview

The report also provided comprehensive statistical data on average interest rates imposed by monetary financial institutions in Cyprus for deposits and loans denominated in euros for euro area residents. The analysis includes updated metrics for new lending volumes in November 2025 and offers a detailed breakdown across various lending categories.

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Key Developments In Interest Rates

Recent adjustments in interest rates were evident across several loan and deposit categories. Notable changes include:

The interest rate on household time deposits up to one year increased to 1.13% from 1.07%.
Deposits from non-financial corporations declined from 1.23% to 1.17%.
Consumer loan rates rose to 6.95% from 6.88%, while home purchase loan rates edged up from 3.73% to 3.86%.
Rates for loans to non-financial corporations showed stability at 4.39% for amounts up to €1 million, but loans exceeding €1 million saw rates increase to 4.50%, reflecting a higher risk premium.

The analysis also emphasized that shifts within the mortgage loan portfolio—encompassing primary residences and vacation homes with diverse risk profiles—affect the weighted average interest rate regardless of isolated rate changes at individual banks.

Comparative Perspectives And Market Implications

The publication, part of the Monetary and Financial Statistics series for December 2025, offers comparative insights through parallel data available on the European Central Bank Data Portal. Specifically, it notes that while interest rates on outstanding loans in Cyprus align closely with the euro area median, deposit rates in Cyprus are markedly lower. This disparity is attributed primarily to high bank liquidity and the relatively small size of Cyprus’s banking market.

Liquidity And Deposit Dynamics

Even as new loan interest rates in Cyprus are competitive with the euro area norms, deposit interest rates remain the lowest in the region. With a Liquidity Coverage Ratio reaching 319% in November 2025—significantly higher than the EU median—the report indicates that such elevated liquidity levels are instrumental in determining the low deposit rates.

Conclusion

The Central Bank of Cyprus’s findings for November 2025 highlight a cautious lending environment accompanied by modest adjustments in key interest rates. As both household and corporate segments navigate this financial landscape, the interplay between high liquidity and market size continues to drive deposit rate disparities across the euro area.

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Cyprus Expects More French Visitors In 2027 As Air Capacity Expands

by THEFUTURE.TEAM

September 18, 2026

Cyprus expects more French visitors in 2027 as airlines increase capacity between the two countries, Tourism Deputy Minister Kostas Koumis said after meetings with tour operators in Paris.

France, one of Cyprus’ key tourism markets, has had a difficult 2026. French arrivals fell 46% year over year to 8,453 in August, from 15,663 a year earlier, according to the Statistical Service of Cyprus (Cystat). August arrivals were also nearly 50% below the 16,798 recorded in the same month of 2024.

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Overall, Cyprus received 2.82 million tourist arrivals between January and August, down 7% from the same period in 2025.

Air Connectivity Supports 2027 Outlook

Koumis discussed the 2027 outlook with senior executives from tour operators offering Cyprus holidays during the IFTM Top Resa travel trade fair in Paris.

Higher air capacity between France and Cyprus was a key focus of the talks. Participants also discussed the impact of geopolitical tensions in the Middle East on the French market and Cyprus’ efforts to adapt its tourism offering to French travelers.

“The French market is undoubtedly an extremely important market for our country’s tourism,” Koumis said, adding that France had regained importance only a few years ago and still had room to grow.

Improved air connectivity will be an important factor in that expansion, according to Koumis. “It is now clear that air connectivity between France and Cyprus is improving significantly, which is a basic prerequisite for the further growth of the market,” he said.

Cyprus Promotes Tourism And Regional Cooperation

Koumis attended the opening of IFTM Top Resa at the invitation of French Tourism Minister Serge Papin, who later visited the Cyprus stand. Held from Sept. 15 to 17 at Paris Porte de Versailles, the event brought together more than 32,000 tourism professionals representing 177 destinations and 1,650 brands, according to organizers.

During his visit, Koumis also met Egyptian Tourism Minister Sherif Fathy. Cyprus and Egypt reaffirmed their tourism cooperation and discussed opportunities to strengthen ties further.

French media interviews covered Cyprus’ tourism offering, infrastructure and services, along with efforts to develop specialized tourism products. Regional instability weighed on arrivals in 2026, particularly during the spring, although the decline narrowed over the summer.