According to the latest data published by the Central Bank of Cyprus, deposits by residents of Cyprus increased once again at the end of August. Moreover, deposits by non-financial corporations and financial intermediaries saw a significant increase in August.
In general, since March 2020, when the coronavirus pandemic appeared in Cyprus, the course of deposits in commercial banks has been recording a steady rise. All these happened during a situation which included many months of lockdown, reduced working hours, and general economic uncertainty. It seems that between March-August, the emergency measures implemented by the Cypriot government to support businesses and households were successful. Compared to the end of March, corporate deposits increased by $238 million and household deposits by $295 million. Total deposits of Cyprus’ residents amounted to $45.2 billion at the end of August, compared to $44.9 billion at the end of March. Since the beginning of the pandemic in Cyprus, the government and the Central Bank have taken a series of strong measures to support the liquidity of households and businesses. The government injected an $1.8 billion aid package into the economy.
The package included, among other things; financial support for businesses that had seen their sales decrease by more than 25%; salary subsidies for employees of companies that suspended their operations due to the pandemic; special purpose compensations for the affected self-employed and individual enterprises; and salary subsidies for employees in parental leaves. The Ministry of Finance also implemented a temporary suspension of VAT tax payments for two months. Furthermore, on the 30th of March 2020, the Minister of Finance