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Statistics on Interest Rates applied by Monetary Financial Institutions

Wednesday, 3 September 2025

The Central Bank of Cyprus has today released the statistics on the average interest rates1 applied by monetary financial institutions (MFIs) in Cyprus on deposits and loans of euro area residents in euro, as well as data regarding volumes (amounts) of new euro denominated loans to euro area residents for the reference month of July 2025. These statistics are included in the August 2025 edition of Monetary and Financial Statistics. In parallel, comparative data for the eurozone countries are presented in the Data Portal of the European Central Bank.

The main developments in interest rates on new deposit and loan contracts, including contracts which were renegotiated, are summarized as follows:

Deposit Rates

  • The interest rate on deposits from households with an agreed maturity of up to one year recorded a decrease to 1,08%, compared with 1,13% in the previous month.
  • The corresponding interest rate on deposits from non-financial corporations registered an increase to 1,21%, compared with 1,18% in the previous month.

Lending Rates2

  • The interest rate on consumer credit increased to 7,40%, compared with 7,01% in the previous month.
  • The interest rate on loans for house purchase decreased to 3,87%, compared with 3,95% in the previous month. It is noted that, the portfolio of loans for house purchase of the MFIs contains various types of loans, such as loans for primary residence, for vacation houses etc, which bear different risk and interest rate. The composition of the housing loans portfolio varies from month to month, resulting in changes to the level of the weighted average interest rate, independently of the increases or decreases of the interest rates of the MFIs. 
  • The interest rate on loans to non-financial corporations for amounts up to €1 million decreased to 4,29%, compared with 4,39% in the previous month. The interest rate on loans to non-financial corporations for amounts over €1 million registered an increase to 4,29%, compared with 4,04% in the previous month.

Amounts of pure new loans3

Pure new loans recorded a decrease to €445,3 million in July 2025 (from total of €743,5 million), compared with €642,8 million (from total of €959,5 million) in the previous month. The main categories of new loans are analysed below:

  • Pure new loans for consumption increased to €24,9 million (from total of €26,8 million), compared with €23,2 million in the previous month (from total of €24,7 million). 
  • Pure new loans for house purchase recorded a decrease to €125,1 million (from total of €185,9 million), compared with €131,4 million in the previous month (from total of €186,6 million).
  • Pure new loans to non-financial corporations for amounts up to €1 million decreased to €57,3 million (from total of €86,9 million), compared with €61,9 million in the previous month (from total of €90,3 million).
  • Pure new loans to non-financial corporations for amounts over €1 million registered a decrease to €230,9 million (from total of €425,4 million), compared with €420,6 million in the previous month (from total of €643,6 million).

Comparison of loan interest rate level with the other euro area countries

In comparison with the other euro area countries, the loan interest rate level in Cyprus is close to the respective median of eurozone. More specifically, in July 2025 the interest rate on outstanding loans to households stood at 4,05%, compared with 3,96% for the eurozone countries (Chart 1). Moreover, the interest rate on outstanding loans to non-financial corporations stood at 4,31%, compared with 3,79% for the eurozone countries (Chart 2).
 

 

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1)  In accordance with the provisions of Regulation 2013/34, as amended, of the European Central Bank, interest rates are calculated as weighted average interest rates, which are sensitive to outliers.

2)  Lending rates refer to loans with floating interest rate and up to one year initial rate fixation.

3)  Amounts of pure new loans include only new loan contracts. Total new loans include new loan contracts and contracts which were renegotiated within the reference month.