Significant Monthly Decline In Cyprus Net New Loans Recorded In January 2026

Overview Of Net New Loans Decline

Data from the Central Bank of Cyprus show that net new loans declined in January 2026 compared with December. Net new lending fell by €377.7 million, reaching €247.3 million compared with €625.0 million in the previous month. Total new loans also declined, dropping from €986.9 million in December to €495.9 million in January.

Shifting Trends In Loan Categories

Consumer lending recorded a small increase during the month. Net new consumer loans rose from €17.2 million to €18.9 million. Mortgage lending declined to €95.7 million from €135.4 million in December. Business lending also decreased. Loans below €1 million fell from €60.3 million to €40.1 million, while loans above €1 million declined from €406.4 million to €88.1 million.

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Interest Rate Adjustments Across Loan Sectors

Interest rates for several loan categories recorded small changes. Consumer loan rates declined slightly from 7.22% to 7.20%. Mortgage loan rates also decreased, falling from 3.78% to 3.70%. Rates on business loans remained at 4.32% for loans up to €1 million. For loans above €1 million, the rate declined from 4.42% to 4.34%.

Deposit Rates And European Context

Deposit rates for household accounts with a maturity of up to one year remained at 1.20%. Business deposit rates increased from 1.27% to 1.34%. The Central Bank of Cyprus said lending rates in Cyprus are now close to the eurozone median, with household loan margins near zero and corporate margins around 0.4%. Deposit rates in Cyprus remain among the lowest in the eurozone, which the central bank links to high liquidity levels in the banking sector.

Changing Patterns In Mortgage Loan Terms

Data from the central bank also show changes in mortgage loan structures. The share of new housing loans with variable interest rates declined to 11.6%. At the beginning of 2022, nearly all new housing loans were issued with variable rates. Borrowers are increasingly choosing loans with fixed interest rates during the initial years of the contract.

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MENA Venture Capital Stable As International Investor Activity Shifts

by THEFUTURE.TEAM

April 10, 2026

A Data-Led Analysis Of Investor Behavior In A War-Affected Region

Venture capital activity in the Middle East and North Africa remained relatively stable one month after the escalation of regional conflict. Early data, however, indicate changes in investor behavior rather than immediate shifts in funding totals. Initial signals are visible in investor participation, capital allocation, and deal pipeline activity.

Venture Markets And The Lag In Response

Funding announcements reflect decisions made months earlier, meaning that today’s figures do not capture the full impact of current events. Investors typically adjust strategies gradually, signaling future shifts long before they are immediately visible in total funding numbers.

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International Capital As The Key Pressure Indicator

Participation of international investors remains a key indicator across the MENA venture market. Global capital has historically accounted for a significant share of funding in the region. Following global interest rate increases, international participation declined through 2023. This shift was reflected in lower cross-border deal activity, more cautious capital deployment, and longer fundraising timelines.

Implications For The Broader Startup Ecosystem

Changes in international investor activity affect multiple parts of the startup ecosystem. A recovery in participation was recorded in 2024 and continued into 2025, supporting funding activity and cross-border investment. If uncertainty persists, potential effects include slower investment decisions, reduced cross-border engagement, and extended fundraising cycles. International capital also plays a role in supporting larger funding rounds and access to global networks.

Next Steps For Stakeholders

International capital represents one of several factors shaping venture activity in the region. Its movement often precedes changes in late-stage funding, startup formation, and exit activity. Investors, policymakers, and ecosystem participants rely on data and scenario analysis to assess these trends and adjust strategies.

For A Deeper Insight

Further analysis on venture activity, capital flows, and geopolitical impact across the region is available in the full MAGNiTT report.

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