Cyprus loan demand surges for businesses and households in Q1 2026

The Central Bank of Cyprus reported that loan demand rose markedly among both corporate borrowers and households during the first quarter of 2026. Lending criteria for business and consumer credit remained unchanged from the previous quarter, but banks expect tighter standards in the second quarter. Business loan demand increased to fund fixed‑investment projects, while households sought more housing loans as consumer confidence grew, alongside higher uptake of consumer and durable‑goods credit. The bank noted a higher margin on riskier loans, reflecting reduced risk tolerance. Overall, the data suggest continued resilience in Cyprus’s economy and labour market despite external uncertainties.