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4th December 2021
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HomeProperty InvestmentNew loans for homes reach record high

New loans for homes reach record high

Net new loans for house purchasing rose to €114 million in June, reaching a new all-time monthly record since December 2014, when the Central Bank of Cyprus (CBC) began recording data.

The rise was driven by a government’s interest rate subsidy scheme, aiming to support economy that has been affected by the Covid-19 pandemic.

According to data released Monday by CBC total new loans continued to rise in June 2021, driven by both net new loans and restructurings. Total new loans recorded an increase to €674.5 million in June, compared with €415.3 million in the previous month. Of the €674.5 million, net new loans amounted to €291.7 million and restructured loans amounted to €383.9 million.

Most of the net new loans were for house purchasing that rose to €113.7 million, followed by loans to non-financial corporations over €1 million which rose to €100.3 million.

New loans of up to €1 million amounted to €50.5 million in June, while new consumer and other loans amounted to €13.4 million and €12.8 million respectively.

The vast majority of restructured loans where loans to non-financial corporations for amounts over €1 million and amounted to €273.4 million in June, followed by restructured housing loans with €58.2 million and restructured loans to non-financial corporations for amounts up to €1 million with €50.5 million.

The restructurings of consumer loans in June amounted to €6.4 million and the restructurings of other loans to €4.1 million.

According to CBC data, during the period January – June, a total of €1.39 billion in net new loans were granted, marking an increase of 4.2% compared to the corresponding period of 2020.

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