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Figure 5.15 Personal and building loans as a proportion ofbank* and credit
society** lending, 1968-1991.
•Dank lending includes ali Ioana, advances and bills disco un led
by Deposito Money Banks.
• •Lending by "Other Financial Institutions".
* - H * — I * H » — t » — Ì . - H . — l » - < i — ( » - < ? - <
Source: Central Bank ofCypms Bulletin, Nicosia, Decemeber 1982,pp. 33, 41, March 1994, pp. 39. 46.
Broad catégories have been used above (Figure 5.15) to illustrate something of the
scale of credit societies' potentially unperceived role in any recovery. What is also
visible is the increasing encroachment of the commercial banking sector upon the
market of personal loans after 1981. This is not perhaps the same market though, as
there are no institutional reasons why bank lending should be systematically
classified falsely. It is more likely that this gauges something of the real rise in
consumption lending.
There were therefore two forms of private domestic investment financing that may
have assisted in boosting confidence in the economy of the Republic after the losses
and insecurity following Turkish action. Along with co-operative investment (which
goes beyond the provision of agricultural credit) and the investments of the church,
private remittances have played a role in re-establishing economic stability with full
employment. Whilst other invisibles (other than aid) declined, remittances, both
from the Diaspora and from émigré workers, rose by 58% in 1974 and remained
relatively stable until 1977 after which they rose sharply again. Aid, however,
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