The average interest rate for a new housing loan in Cyprus in February stood at 3.04%, lower than the corresponding 3.41% average of eurozone banks, according to data published on Wednesday by the Central Bank of Cyprus.
At the same time, the average interest rate for new household fixed deposits of up to one year was 1.19%, with the gap still remaining compared to the average deposit rate in the eurozone, which stands at 1.78%.
Regarding housing loans, according to the Central Bank of Cyprus, the lowest interest rate for new contracts, regardless of the initial rate fixation period, is offered by the National Bank of Greece (2.01%), while the highest is offered by Societe Generale at 5.14%. It is noted that the second most expensive rate is offered by the Housing Finance Corporation at 3.41%.
For existing housing loans, the average interest rate in Cyprus is 3.50%, significantly higher than the corresponding rate in the eurozone (2.46%). Variations between banking institutions are smaller, with the highest rate (Bank of Cyprus) at 3.73% and the lowest (Housing Finance Corporation) at 2.96%.
For new business loans of up to €1 million, regardless of the initial rate fixation period, the average interest rate in Cyprus stands at 4.06%. The lowest rate is offered by Eurobank (3.76%) and the highest by Banque SBA (6.34%).
For new business loans exceeding €1 million, the average interest rate is 3.85%, with the lowest offered by Bank of Cyprus (2.89%) and the highest by the Cyprus Development Bank (4.50%).
As for existing business loans with a duration of more than five years, the average interest rate stands at 4.06%, compared to 3.08% in the eurozone. The highest rate is offered by Societe Generale at 4.91%, and the lowest by Eurobank at 3.79%.
Lower deposit rates in Cyprus
Regarding deposits, interest rates in banking institutions in Cyprus continue to be lower than those offered by corresponding institutions in the eurozone. The average interest rate for household fixed deposits of up to one year is 1.19%, compared to 1.78% in the eurozone. The highest rate is offered by the National Bank of Greece (1.61%) and the lowest by Bank of Cyprus (0.81%).
The interest rate gap compared to the eurozone is even larger for existing household fixed deposits of up to two years. Specifically, the average rate in Cyprus stands at just 0.76%, while in the eurozone it is 1.73%. The lowest rate is offered by Bank of Cyprus (0.48%), and the highest by Jordan Kuwait Bank (1.65%).
For new fixed deposits of up to one year by non-financial corporations, the average rate is the same as the one of households, at 1.19%, while the corresponding eurozone rate is higher at 1.90%. The lowest rate for corporate deposits is offered by the Housing Finance Corporation (0.95%), and the highest by the National Bank of Greece (1.61%).
For existing fixed deposits of up to two years by non-financial corporations, the average rate stands at 1.05%, compared to 2.01% in the eurozone. The lowest rate is offered by Societe Generale (0.82%) and the highest by the National Bank of Greece (1.45%).
CNA