Cyprus banks continued to offer higher-than-average lending rates and below-average deposit rates in November, widening the gap with other eurozone countries, according to European Central Bank data.
The interest rate for household deposits up to one year in Cyprus fell to 1.70% in November from 1.76% in October, placing the country second-lowest in the eurozone, ahead only of Slovenia at 1.45%. The eurozone average stands at 2.61%, with Italy offering the highest rate at 3.44%.
Corporate deposit rates in Cyprus also declined to 1.99% in November from 2.19% in October, ranking lowest in the eurozone where the average rate is 2.90%. France leads with corporate deposit rates at 3.18%.
On the lending side, mortgage rates in Cyprus decreased to 4.50% in November from 4.62% in October, remaining above the eurozone average of 4.27%. Malta offers the lowest mortgage rates at 2.56%, while Germany has the highest at 5.02%.
Corporate loans up to €1 million saw rates fall to 5.01% from 5.45%, while rates for loans exceeding €1 million increased to 4.97% from 4.72%.
New mortgage lending in Cyprus rose to €129.5 million in November, including €98.5 million in new loans and €31 million in renegotiations. Corporate lending also increased, with loans up to €1 million reaching €73.5 million and loans over €1 million totalling €398.2 million.
In December, Cyprus banks announced plans to implement lower fees and more favourable mortgage rates from January 2025, following political pressure and in exchange for parliament not imposing an excess profits tax. However, significant disparities with eurozone averages remain.
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