On Friday 22nd November, the Central Bank of Cyprus (CBK) reported that 94% of loans issued by credit management companies are non-performing loans (NPLs).
According to the report by the island nation's main financial institution, the total outstanding loan balance reached €20.98 billion. Of this: €10.64 billion to individuals and €10.34 billion to commercial organisations. Meanwhile, non-performing loans totalled €19.66 billion and performing loans €1.31 billion.
These figures point to ongoing problems in the Cypriot financial sector, despite years of efforts to reduce non-performing loans, which were mainly formed as a result of the 2013 crisis. Furthermore, the data shows that toxic loans make up the majority of assets in the portfolios of credit management companies. In total, these organisations currently hold 7,610 properties with a total value of €1.11 billion.
It should be noted that, according to a CBC analysis published earlier this month, the total non-performing loans (NPLs) of all financial institutions in Cyprus fell by €15 million to €1.63 billion in August 2024. At the same time, the NPL ratio remained at 6.8 percent. Total NPLs to households amounted to €916 million and to commercial organisations to €682 million.
Finally, total loans declined slightly to € 24.05 billion and the coverage of problem loans improved to 55.3 per cent, while restructured loans increased to € 1.36 billion.