loan demand

Loan Demand in Cyprus Declines Amidst High Interest Rates

The loan demand in Cyprus has dropped significantly due to high interest rates, with potential borrowers hesitant to take on new debt amidst economic uncertainties. While lending criteria for households remain unchanged, the spike in interest rates has deterred individuals from seeking loans, especially for real estate and consumables, signaling cautious consumer sentiment.

Decline in Business Loans Continues, with Housing Loan Demand Stabilizing

By Demis Papadopoulos

In late 2023, business loan demand continued to decrease due to highinterest rates, with SMEs being particularly impacted. Housing loan demand, on the other hand, remained stable thanks to competitive interest rates offsetting reduced consumer confidence, while consumer loans saw a further decline reflecting weakened spending habits.