Cypriot Borrowers Shifting to Fixed Interest Rates
March 13, 2026
More households and businesses in Cyprus are shifting to fixed-rate loans instead of variable-rate ones. From nearly 100% in 2022, the share of variable-rate loans for home purchases has dropped below 30%. This shift indicates a desire for greater security in financing. Banks in Cyprus continue to have higher interest rate spreads compared to the Eurozone average. The slower adjustment of interest rates creates favorable conditions for banks but increases pressure on borrowers.