Central Bank of Cyprus reports July 2026 deposit growth and loan decline

In July 2026, the Central Bank of Cyprus (CBC) recorded a net increase of €562.3 million in total deposits, bringing the outstanding balance to €59.2 billion. The annual growth rate of deposits reached 6.2%, up from 5% in June. This growth was primarily driven by Cyprus residents, whose deposits increased by €603.2 million, including €195.7 million from households and €257.1 million from non-financial corporations.

Conversely, total loans experienced a net decline of €68.7 million, reaching a total balance of €28.3 billion, a reversal from the €499.4 million increase observed in June. The CBC attributed this contraction largely to €90 million in repayments by residents of other euro-area member states. Domestically, lending behavior showed a clear divergence: while loans to Cyprus-based households increased by €65.7 million, non-financial corporations reduced their debt by €79.6 million. The annual growth rate for total loans slowed slightly to 11.1% from 11.6% in the previous month.