As of the end of April 2025, the level of non-performing loans (NPLs) in the Cypriot banking system had fallen to 5.9%, down from 6.1% the previous month. The Central Bank reported this on Monday, August 11.
Experts attributed this improvement to several factors, including active debt repayments, transfers of loans to the performing category, write-offs of bad debts, and the positive impact of currency fluctuations on settlements.
Details on the volume of loans
At the end of April, the total amount of loans issued was €25.19 billion. Of these loans, €1.49 billion were classified as problem loans, €1.15 billion of which were overdue by more than 90 days. The NPL ratio was 7.7% among households and 5.1% among corporate borrowers. Among small and medium-sized enterprises, this indicator reached 7.3%.
Growth in provisions for possible losses
The Central Bank reported a slight increase in the ratio of problem loans covered by provisions, which rose to 60.7% in April 2025, up from 60.5% in March. This means that banks are now slightly better protected against potential losses on NPLs.
Restructuring and prospects
The volume of restructured loans at the end of April was €1.3 billion, of which €0.7 billion is still classified as non-performing. Experts note that the situation in the Cypriot banking sector in the coming months will depend on economic dynamics, interest rates, and the solvency of businesses and individuals.