Cyprus records surge in new loans for June 2026

In June 2026, Cyprus witnessed a significant increase in new loan volume, which reached €626.2 million compared to €361.9 million in May. According to Central Bank of Cyprus data, this growth was primarily driven by corporate loans exceeding €1 million, which more than tripled to €387.5 million. Mortgage loans also saw a modest rise to €152.1 million, while consumer loans increased slightly to €25.1 million. Conversely, corporate loans under €1 million decreased to €54.5 million. Including renegotiated contracts, the total volume of new financing amounted to €831.3 million.

Despite the rise in lending activity, Cypriot banks maintain some of the lowest deposit interest rates in the Eurozone. While deposit rates for households and non-financial corporations saw minor increases in June to 1.42% and 1.41% respectively, the Central Bank attributes this discrepancy to the high liquidity levels of Cypriot banks and the limited scope of the local banking market. The Liquidity Coverage Ratio in Cyprus was reported at 310% in June 2026, significantly higher than the EU average of 158%. Furthermore, while business lending rates have generally risen, consumer and mortgage loan interest rates have experienced a decline, with consumer rates falling to 6.50% from 6.95% in May.