In December 2025, deposit rates rose in Cyprus, while loan rates showed mixed dynamics

In December 2025, Cyprus saw an increase in deposit interest rates for both households and businesses, while loan interest rates displayed mixed trends.

According to published data, the interest rate on term deposits up to one year for households rose to 1.20%, compared with 1.13% in November.

The equivalent rate for deposits of non-financial corporations increased to 1.27%, up from 1.17% the previous month.

The consumer loan rate rose to 7.22% from 6.95% in the previous month.

At the same time, the mortgage loan rate fell to 3.78% compared with 3.86% in November. It is noted that the mortgage loan portfolio includes various types of loans — for primary residences, secondary properties, and other purposes — with different risk levels and interest rates. Changes in the structure of this portfolio from month to month affect the weighted average rate independently of individual loan rate changes.

The interest rate on loans to non-financial corporations up to €1 million decreased to 4.32% (from 4.39%), and on loans over €1 million — to 4.42% (from 4.50%).

Interest rates on existing loans in Cyprus have approached the median values of the eurozone. For households, the difference is 0.0%, and for non-financial corporations — about 0.3%.

For new loans, the rates are also comparable to the eurozone. In particular, the weighted average rate on new mortgage loans for households in Cyprus is 0.3% below the eurozone median, while for non-financial corporations it exceeds it by 0.6%.

Unlike loan rates, deposit rates in Cyprus remain the lowest in the eurozone. This is attributed to the high liquidity of Cypriot banks, which ranks among the highest in the EU.

In December 2025, the Liquidity Coverage Ratio (LCR) in Cyprus stood at 319%, while the EU median in September 2025 was 191%, and the average was 161%. Another factor cited is the limited size of the country's banking market.

Interest rates on new deposits are roughly at the same level as on existing deposits.