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Rising Loan Demand Amid Stable Lending Conditions: Insights from the Cyprus Central Bank Survey

by THEFUTURE.TEAM
September 19, 2025

Increasing Demand Drives Loan Growth

The second quarter of 2025 witnessed a notable increase in net loan demand, spurred by both business and household sectors, according to the latest survey by the Central Bank of Cyprus. This surge is particularly evident in mortgage and consumer loan segments, reflecting a strong appetite across multiple financial channels.

Stable Lending Criteria Amid Competitive Pressures

Despite the rising demand, banks maintained unchanged lending criteria for both businesses and households compared to the previous quarter. The survey details that while the overall terms for new loans—including mortgages, consumer, and other household credit—remained stable, interest rates and bank margins experienced downward pressure. For businesses, lower interest rates on new loans were driven by increased competition and a perception of reduced risk, while similar competitive forces influenced the mortgage segment for households.

Market Insights and Future Prospects

In the context of ongoing market dynamics, banks anticipate that lending terms for businesses will tighten in the third quarter, even as household lending standards are expected to remain unchanged. This forecast aligns with evolving economic conditions, where sustained loan demand for mortgages and consumer loans is underpinned by favorable interest rates, renewed consumer confidence, and improved housing market outlooks.

Drivers Behind the Demand

The survey highlights that increased business loan demand stems from financing requirements associated with inventory replenishment, working capital, and fixed investments. For households, emerging market trends, including attractive interest rates and a buoyant housing market, are key factors driving the rise in mortgage loan applications. Both segments have witnessed a strong correlation between market sentiment and loan uptake.

Conclusion

As the banking sector navigates a competitive landscape, the findings from the Central Bank of Cyprus underline a robust and stable lending environment in the second quarter of 2025. Businesses and households alike continue to pursue financing opportunities, positioning the market for further expansion as banks adjust their policies in response to shifting economic signals.

EU Moderates Emissions While Sustaining Economic Momentum

by THEFUTURE.TEAM
November 15, 2025

The European Union witnessed a modest decline in greenhouse gas emissions in the second quarter of 2025, as reported by Eurostat. Emissions across the EU registered at 772 million tonnes of CO₂-equivalents, marking a 0.4 percent reduction from 775 million tonnes in the same period of 2024. Concurrently, the EU’s gross domestic product rose by 1.3 percent, reinforcing the ongoing decoupling between economic growth and environmental impact.

Sector-By-Sector Performance

Within the broader statistics on emissions by economic activity, the energy sector—specifically electricity, gas, steam, and air conditioning supply—experienced the most significant drop, declining by 2.9 percent. In comparison, the manufacturing sector and transportation and storage both achieved a 0.4 percent reduction. However, household emissions bucked the trend, increasing by 1.0 percent over the same period.

National Highlights And Notable Exceptions

Among EU member states, 12 reported a reduction in emissions, while 14 saw increases, and Estonia’s figures remained static. Notably, Slovenia, the Netherlands, and Finland recorded the most pronounced declines at 8.6 percent, 5.9 percent, and 4.2 percent respectively. Of the 12 countries reducing emissions, three—Finland, Germany, and Luxembourg—also experienced a contraction in GDP growth.

Dual Achievement: Environmental And Economic Goals

In an encouraging development, nine member states, including Cyprus, managed to lower their emissions while maintaining economic expansion. This dual achievement—reducing environmental impact while fostering economic activity—is a trend that has increasingly influenced EU climate policies. Other nations that successfully balanced these outcomes include Austria, Denmark, France, Italy, the Netherlands, Romania, Slovenia, and Sweden.

Conclusion

As the EU continues to navigate its climate commitments, these quarterly insights underscore a gradual yet significant shift toward balancing emissions reductions with robust economic growth. The evolving landscape highlights the critical need for sustainable strategies that not only mitigate environmental risks but also invigorate economic resilience.

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