Cyprus deposit rates remain lower than eurozone average

The Central Bank of Cyprus (CBC) has reported that the average interest rate for new housing loans in Cyprus stood at 3.04 per cent in February, below the eurozone average of 3.41 per cent.

At the same time, the average interest rate for new household term deposits of up to one year reached 1.19 per cent, remaining lower than the eurozone average of 1.78 per cent.

According to the central bank, the lowest interest rate for new mortgage contracts regardless of initial rate fixation period was offered by the National Bank of Greece at 2.01 per cent.

The highest rate for new housing loans was recorded at 5.14 per cent by Societe Generale, marking a significant variation across institutions.

The second highest rate was offered by the Housing Finance Corporation at 3.41 per cent, highlighting disparities within the domestic market.

For existing housing loans in Cyprus, the average interest rate stood at 3.50 per cent, significantly above the eurozone average of 2.46 per cent.

Variations among banks in existing mortgages were narrower, with the Bank of Cyprus offering the highest rate at 3.73 per cent.

The lowest rate for existing housing loans was recorded at 2.96 per cent by the Housing Finance Corporation.

In the category of new business loans up to 1 million euros, the average interest rate in Cyprus reached 4.06 per cent.

The lowest rate in this category was offered by Eurobank at 3.76 per cent, while the highest came from Banque SBA at 6.34 per cent.

For new business loans exceeding 1 million euros, the average rate stood at 3.85 per cent.

The Bank of Cyprus offered the lowest rate at 2.89 per cent, while the highest rate of 4.50 per cent was recorded by the Cyprus Development Company.

Regarding existing business loans with a maturity of over five years, the average interest rate in Cyprus stood at 4.06 per cent, compared with 3.08 per cent in the eurozone.

The highest rate in this segment was offered by Societe Generale at 4.91 per cent, while the lowest was provided by Eurobank at 3.79 per cent.

In deposits, interest rates in Cyprus remain consistently lower than those in the eurozone, according to the central bank’s data.

The average rate for new household term deposits up to one year stood at 1.19 per cent, compared with 1.78 per cent in the eurozone.

The highest deposit rate for households was offered by the National Bank of Greece at 1.61 per cent.

The Bank of Cyprus recorded the lowest household deposit rate at 0.81 per cent.

The gap with the eurozone is even wider for existing household term deposits of up to two years.

At the same time, the average rate in Cyprus stood at 0.76 per cent, compared with 1.73 per cent in the eurozone.

The lowest rate in this category was offered by the Bank of Cyprus at 0.48 per cent, the CBC reported.

Meanwhile, the highest rate reached 1.65 per cent from Jordan Kuwait Bank, reflecting significant variation.

For new term deposits of up to one year by non-financial corporations, the average rate stood at 1.19 per cent, again below the eurozone level of 1.90 per cent.

The lowest rate for corporate deposits was offered by the Housing Finance Corporation at 0.95 per cent.

The highest rate for corporate deposits reached 1.61 per cent from the National Bank of Greece.

In existing corporate term deposits of up to two years, the average interest rate in Cyprus stood at 1.05 per cent, compared with 2.01 per cent in the eurozone.

The lowest rate in this category was offered by Societe Generale at 0.82 per cent.

The highest rate was recorded at 1.45 per cent by the National Bank of Greece, concluding the central bank’s overview of lending and deposit trends.