Fresh lending in Cyprus decreased by close to 25% in 2020, affected by the crisis of the coronavirus pandemic.
According to the Central Bank, net new debt amounted to € 2.4 billion, compared to 3.2 billion in 2019, with the most significant decrease in large corporate loans over € 1 million. The reduction in loans occurred despite the support of new borrowing by the state through interest rate subsidies on new mortgages from March 2020.
READ ALSO: Households affected but with improved climate
In particular, the new large corporate loans in excess of € 1 million amounted to € 965 million, showing a decrease of 37% or € 581 million compared to 2019.
Net new mortgage loans in 2020 amounted to € 783 million, showing a decrease of 11% or € 93 million compared to 2019.
A 17% decrease in absolute numbers corresponding to € 72 million was presented by the net new corporate loans up to € 1 million, which in 2020 amounted to € 365 million compared to 438 in 2019.
Other net loans amounted to € 141 million, showing a decrease of 2.2% or € 40 million compared to 2019, while consumer loans decreased by 7.5% compared to 2019 and fell to € 149 million compared to with € 161 million in 2019.
In the last month of 2020, a total of € 308 million was granted in fresh borrowing compared to € 243 million in November 2020.
31% increase in restructuring
According to the CBC data, in 2020, loans totaling € 755 million were renegotiated, showing a 21% increase compared to € 576.5 million in 2019.
The largest restructuring was presented by corporate loans over € 1 million which in 2020 amounted to € 468 million compared to € 372 million in 2019.
Mortgage restructuring amounted to € 158 million in 2020 compared to € 96 million in 2019, while restructured corporate loans up to € 1 million rose to € 69 million from € 48 million last year.
In contrast to other loans, total restructuring in 2020 decreased to € 44 million compared to € 49 million, while restructuring in consumer loans amounted to € 17 million compared to 12 in 2019.
Philenews / ΚΥΠΕ