High Interest Rates Continue To Put Pressure On Loan Demand

Loan demand continued to decline in the first quarter of 2024, with banks attributing the decline to high interest rates, while the terms and conditions for granting loans to businesses became tighter in the first quarter of 2024 after three consecutive quarters in which they had remained unchanged.

The criteria for lending to households remained stable.

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According to the Central Bank’s Bank Lending Survey for the first quarter of 2024, the credit standards, as well as the terms and conditions for loans to enterprises, tightened in the first quarter of 2024, mainly due to Banks’ reduced risk tolerance, as well as their perception of increased risk about the general economic situation and the outlook for the economy.

On the other hand, the credit standards for loans to households remained unchanged in the first quarter of 2024, for mortgage loans, consumer and other loans.

The terms and conditions for housing loans also remained unchanged while they tightened for consumer credit and other lending to households.

The net demand for business loans decreased, in the first quarter of 2024, and at the same time, the net demand for housing loans as well as for consumer credit and other lending also decreased.

However, the survey notes that increased financing needs for fixed investment, possibly reflecting the positive growth prospects of the Cypriot economy, as well as debt refinancing/restructuring, contributed positively to loan demand.

As far as households are concerned, the net decline in demand for mortgage loans is attributed by banks to higher interest rates, lower consumer confidence and a weakening housing market outlook.

Finally, according to banks’ expectations for the second quarter of 2024, the lending criteria for both businesses and households are expected to remain unchanged compared to the previous quarter. At the same time, a decline in net demand for consumer and other loans from households is expected, while both net demand for business loans and mortgage loans from households are expected to remain stable.

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Apple’s Memory Squeeze: Strategic Challenges Amid Soaring AI Demand

by THEFUTURE.TEAM

May 1, 2026

During a period of strong earnings across the technology sector, rising memory costs have become a recurring theme for major companies.

Apple CEO Tim Cook said during the second-quarter earnings call that memory costs are expected to have an increasing impact on the business, pointing to supply constraints alongside growing demand linked to artificial intelligence infrastructure.

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Memory Constraints Drive Strategic Recalibration

Apple reported revenue above expectations and provided positive guidance, while also highlighting pressure from supply limitations. Cook noted that the impact was limited in the December quarter but became more visible in the March period. For the June quarter, he indicated that some Mac models may be affected due to sustained demand, adding that the company is considering a range of options in response to cost increases.

Similar dynamics have been reported by other companies. Meta and Microsoft both cited higher memory costs as a factor in rising capital expenditure plans. Amy Hood said memory-related costs could account for $25 billion within the company’s projected $190 billion capital expenditure plan for 2026.

Industry-Wide Supply Pressures

Demand for high-performance chips continues to increase, particularly for AI applications, where memory requirements are higher. Companies such as Nvidia are producing chips that require larger memory capacity, while suppliers including Micron Technology, Samsung Electronics, and SK Hynix are expanding output. At the same time, allocation of memory to data centres and AI infrastructure is affecting availability for consumer devices, including PCs and smartphones.

Strategic Options Amid Rising Costs

Analysts are assessing how companies may respond to rising costs. William Kerwin suggested that longer-term supply agreements could help stabilise pricing, while other approaches may include adjustments to product configurations, selective price changes, or absorbing part of the cost within margins. Additional commentary from Laura Martin and Gil Luria points to broader industry adjustments as companies respond to supply constraints.

Outlook: Managing Supply And Demand Pressures

Apple has so far avoided immediate price increases, including in recent product updates such as the iPhone lineup, iPad models, and Mac devices. At the same time, memory availability and pricing remain key factors for upcoming quarters, as companies balance demand for AI infrastructure with supply conditions across the semiconductor market.

Conclusion

Developments around memory supply and pricing are becoming a central factor in how technology companies plan production, investment, and pricing. These dynamics are reflected across earnings reports and are likely to remain part of industry discussions as demand for AI-related infrastructure continues to grow.

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