Net new loans in Cyprus rose in October, driven by increased lending to businesses for amounts exceeding €1 million, according to data released on Wednesday by the Central Bank of Cyprus (CBC). Loans in this category also saw the largest drop in interest rates.

Net new loans totaled €360 million in October, up from €286.3 million in September. However, total new loans, including renegotiations, fell to €533.8 million compared to €667.9 million in the previous month.

New consumer loans decreased to €21.3 million (€20.2 million net new loans), down from €30.2 million (€22.4 million net new loans) in September.

Housing loans declined to €115.7 million (€96.1 million net new loans), from €121.6 million (€96.5 million net new loans).

Total loans to non-financial companies (up to €1 million) fell to €57.3 million (€41.8 million net) from €63.8 million (€41.2 million net).

Total loans to non-financial companies (over €1 million) decline to €333.9 million (€201.8 million net) from €400 million (€108.2 million net) in September.

Rise in mortgage rates, decline for businesses

According to data from CBC, interest rates on household loans increased in October, while rates for business loans decreased.

Consumer loans rates climbed to 8.00% in October, up from 6.50% in September. Mortgage rates increased slightly to 4.62% from 4.53%.

For business loans (up to €1 million) rates dropped to 5.45% from 5.59%, while for business loans (over €1 million) rates decreased significantly to 4.72% from 5.26%.

Deposit rates down for households, up for business

Household fixed-term deposits for up to one year saw rates decrease to 1.76% from 1.98%.

On the other hand, rates for corporate fixed-term deposits increased to 2.19% from 2.14% in September.