Deposits and loans in Cyprus on the rise

NicosiaDeposits and loans in the Cyprus banking system registered a net increase in June with total deposits amounting to €47.8 billion and total loans to €32.2 billion.

Data published earlier this week by the Central Bank of Cyprus (CBC), show that total deposits in June 2020 recorded a net increase of €106.4 million, compared with a net decrease of €30.8 million in May 2020.

The annual growth rate stood at -0.7%, compared with -0.8% in May 2020. The outstanding amount of deposits reached €47.8 billion in June 2020.

However, the CBC added that total loans in June 2020 exhibited a net increase of €264.7 million, compared with a net increase of €35.2 million in May 2020. Nevertheless, the outstanding amount of loans decreased by €568.1 million in June 2020 and reached €32.2 billion.

The difference between the net change and the change of the outstanding amount of loans is attributed to reclassification, revaluation, exchange rate or other adjustments, the CBC said.

The annual growth rate stood at -4.0%, compared with -4.4% in May 2020.

The CBC also noted that the above changes in loans were positively affected by the suspension of instalments related to loans from MFIs to households and non-financial corporations amounting to €10.5 billion, according to a Covid-19 induced Decree on the suspension of loan instalments by the Minister of Finance.