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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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Nearly 80% Of Cyprus’ Foreign Investment Came From Outside EU In 2025

by THEFUTURE.TEAM

November 11, 2026

Cyprus had the highest share of foreign direct investment (FDI) originating outside the European Union among 14 EU member states reporting data for 2025. According to Eurostat, non-EU economies accounted for 79.4% of the island’s inward FDI, highlighting its distinct position among the reporting countries.

The figures contrast with most other EU economies, where investment from within the bloc remains the main source of foreign capital.

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Cyprus Leads In Non-EU Investment Share

Eurostat measures inward FDI positions by the ultimate investing economy, identifying the economy where the investment ultimately originates rather than only the country through which it is channelled. This distinction is important when investments involve subsidiaries or intermediary holding companies.

In nine of the 14 reporting countries, most foreign investment came from within the EU. The Czech Republic recorded the highest intra-EU share, at 75.1%, followed by Romania at 73.3% and Estonia at 64.8%.

Cyprus was among five countries where non-EU economies accounted for more than half of inward FDI. Spain, Sweden, Greece and Denmark also recorded shares above 50%, ranging from 51% to 55.1%.

US Is The Largest Source Of FDI Across Reporting Countries

Across the 14 countries collectively, the United States was the largest ultimate source of foreign direct investment, accounting for 15.4% of the total.

Germany ranked second at 11.5%, followed by France at 9.4%, the United Kingdom at 9.3% and Switzerland at 5.8%.

These figures reflect the combined investment positions of the reporting countries and do not identify Cyprus’s leading individual investment sources. However, the country-level data underline the island’s strong reliance on capital originating outside the European Union.