Net new mortgage loans for home purchases increased to €114 million in June, setting a new all-time monthly high since the Central Bank of Cyprus (CBC) began collecting statistics in December 2014.
The increase was prompted by the government’s interest rate subsidy plan, which aimed to help the economy devastated by the Covid-19 epidemic.
According to CBC statistics issued on Monday, total new loans increased in June 2021, driven by both net new loans and restructurings. Total new loans increased to €674.5 million in June, up from €415.3 million the previous month. Net new loans totaled €291.7 million, while restructured loans totaled €383.9 million of the €674.5 million.
The majority of net new loans increased to €113.7 million for home purchases, followed by loans to non-financial businesses above €1 million, which increased to €100.3 million.
In June, new loans of up to €1 million totaled €50.5 million, while new consumer and other loans were €13.4 million and €12.8 million, respectively.
The vast majority of restructured loans were loans to non-financial corporations for amounts greater than €1 million, totaling €273.4 million in June, followed by restructured housing loans for amounts less than €1 million, totaling €58.2 million, and restructured loans to non-financial corporations for amounts less than €1 million, totaling €50.5 million.
In June, consumer loan restructurings totaled €6.4 million, while other loan restructurings totaled €4.1 million.
According to CBC statistics, a total of €1.39 billion in net new loans were given from January to June, representing a 4.2 percent rise over the same period in 2020.