According to the latest data published by the Central Bank of Cyprus (CBK) on Friday, March 5, the volume of non-performing bank loans (NPLs) in the country decreased to EUR 29 million in November 2020.
By the way, a month earlier this figure was 30.120 million euros.
In other words, the number of non-performing loans in the Cypriot banking system decreased by EUR 779 thousand in the eleventh month of last year.
As you may know, according to the directive of the European Banking Authority, problem loans are loans considered as non-performing for at least one year.
Loans overdue for more than 90 days, which do not include restructured properties, also significantly decreased in November 2020 and amounted to EUR 4.589 million. The share of non-performing loans in total loans decreased to 19.1% in November 2020 from 47.8% in December 2014.
Overdue household loans totaled EUR 3.137 million in November 2020 from EUR 4.637 million in December 2019. The amount of overdue small business loans is EUR 2.047 million in November, compared with EUR 3.388 million in December 2019.
It is worth noting that de facto non-performing loans are a persistent weakness in the country's banking sector, although it is predicted that the state of affairs will gradually improve. "Red loans" continue to pose a risk to the stability of the island's financial system and remain the main obstacle to strengthening the banking sector.