Statistics on Interest Rates applied by Monetary Financial Institutions

Wednesday, 3 December 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 October 2025. These statistics are included in the November 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 1,07%, compared with 1,10% in the previous month.
  • The corresponding interest rate on deposits from non-financial corporations registered a marginal decrease to 1,23%, compared with 1,24% in the previous month.

Lending Rates2

  • The interest rate on consumer credit increased to 6,88%, compared with 6,46% in the previous month.
  • The interest rate on loans for house purchase increased to 3,73%, compared with 3,63% 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 increased to 4,39%, compared with 4,32% in the previous month. The interest rate on loans to non-financial corporations for amounts over €1 million registered a decrease to 3,69%, compared with 3,79% in the previous month.

Amounts of pure new loans3

Pure new loans recorded a decrease to €429,4 million in October 2025 (from total of €624,9 million), compared with €447,9 million (from total of €770,5 million) in the previous month. The main categories of new loans are analysed below:

  • Pure new loans for consumption increased to €23,7 million (from total of €25,1 million), compared with €21,2 million in the previous month (from total of €22,6 million).
  • Pure new loans for house purchase recorded an increase to €117,5 million (from total of €158,7 million), compared with €112,9 million in the previous month (from total of €165,4 million).
  • Pure new loans to non-financial corporations for amounts up to €1 million decreased to €50,8 million (from total of €68,3 million), compared with €62,7 million in the previous month (from total of €83,7 million).
  • Pure new loans to non-financial corporations for amounts over €1 million registered a decrease to €232,0 million (from total of €359,6 million), compared with €246,7 million in the previous month (from total of €492,5 million).

Cyprus interest rates in a European context: Analysis and comparison

Loan interest rates (outstanding amounts)

The interest rate level on outstanding loans in Cyprus is close to the respective Eurozone median4, with the spread standing at zero (0,0%) for households and to 0,4% for non-financial corporations.

 

Loan interest rates (new business)

The interest rate level on new loans in Cyprus is comparable to the Eurozone median. More specifically, the spread between the weighted average interest rate on loans to households for house purchase stands at -0,3% (lower than the Eurozone median), while the respective spread for non-financial corporations is limited to just 0,1%.

 

Deposit interest rates (outstanding amounts)

In contrast to the interest rates on loans, interest rates on outstanding deposits in Cyprus are considered as outlier, standing at the lower level within Eurozone. This might be attributed to the excess liquidity of credit institutions in Cyprus, which is among the highest ones within Eurozone. (indicatively, the Liquidity Coverage Ratio – LCR in Cyprus in October 2025 stood at 329%, compared with 183% (median) and 162% (mean) in European Union in June 2025), as well as to the short range of the banking sector in Cyprus.

 

Deposit interest rates (new business)

Similarly with interest rates on outstanding deposits, the interest rates on new deposits in Cyprus are standing at the lower level within Eurozone, due to the same reasons mentioned above.

 

Click here.

 

  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.
  4. For the purposes of this analysis, the median is considered as a more appropriate measure of comparison, since it is not sensitive to outliers mainly arising from countries with large portfolios

     

Central Bank of Cyprus - Statistics on Interest Rates applied by Monetary Financial Institutions