In July 2026, Cyprus’s banking sector continued to reduce the volume of non-performing loans. According to the Central Bank of Cyprus (CBC), their total value stood at €806 million as of July 31, 2026, compared with €821 million in June and €839 million at the end of December 2025.
The share of non-performing loans fell to 1.5% from 1.6% a month earlier. At the same time, total lending increased to €52.847 billion. The data were published by the Central Bank of Cyprus and cover all credit institutions operating in the country on a consolidated basis, limited to their operations within Cyprus.
Non-Performing Loans in Cyprus: How the Situation Has Changed
In July 2026, the volume of non-performing loans continued to decline. For comparison, it stood at €1.173 billion in September 2025, €1.541 billion at the end of 2024, €1.892 billion at the end of 2023, €2.290 billion at the end of 2022, and €2.964 billion at the end of 2021. The share of non-performing loans also declined steadily. It was 2.3% in September 2025, 3.1% at the end of 2024, 3.7% at the end of 2023, 4.5% at the end of 2022, and 5.5% at the end of 2021.
For the main indicator, the Central Bank uses the methodology applied by the European Banking Authority (EBA) for its risk dashboard. The calculation also includes loans and advances to central banks and credit institutions.
Total lending is increasing. At the end of July 2026, it reached €52.847 billion, up €785 million from €52.062 billion in June. At the end of December 2025, the figure stood at €52.114 billion. The total also includes balances held with central banks and other demand deposits. The amount of loans more than 90 days past due also declined, from €639 million in June to €622 million in July. At the end of 2025, the figure was €647 million.
At the same time, the share of these loans remained unchanged at 1.2% of total lending, the same as in June and December 2025. For comparison, the figure stood at 1.9% in September 2025, 2.4% at the end of 2024, 2.9% at the end of 2023, 3.5% at the end of 2022, and 3.9% at the end of 2021.
Restructured Loans and Bank Provisions
The volume of restructured loans in Cyprus also continued to decline. At the end of July 2026, it stood at €707 million, compared with €739 million in June and €824 million at the end of 2025. Of this amount, €305 million were still classified as non-performing loans. For comparison, such loans amounted to €316 million in June and €323 million in December 2025.
The share of restructured loans in total lending decreased to 1.3%. It stood at 1.4% in June and 1.6% at the end of December 2025.
In previous years, the figure was significantly higher: 2% in September 2025, 2.7% at the end of 2024, 3.2% at the end of 2023, 5.3% at the end of 2022, and 6.5% at the end of 2021. Coverage of non-performing loans by provisions declined slightly. In July, the coverage ratio stood at 64.5%, compared with 64.9% in June. However, it remained above the 62.1% recorded at the end of 2025. Total accumulated provisions for potential credit losses reached €651 million. A month earlier, the figure was €660 million, while at the end of 2025 it stood at €646 million. Of the total provisions, €521 million related to non-performing loans. In June, the figure was €533 million, while at the end of December 2025 it was also €521 million. Over the longer term, the non-performing loan coverage ratio changed as follows:
- September 2025 — 68.5%;
- end of 2024 — 59.9%;
- end of 2023 — 50%;
- end of 2022 — 48%;
- end of 2021 — 43.1%.
Business Lending in Cyprus
At the end of July 2026, total lending to non-financial corporations stood at €14.106 billion. Of this amount, €317 million were non-performing loans. Loans more than 90 days past due reached €216 million. Total restructured loans amounted to €419 million, of which €169 million were still classified as non-performing.
The share of non-performing loans among non-financial corporations fell to 2.2%, compared with 2.3% in June. Total accumulated provisions for corporate loans reached €321 million, of which €230 million were set aside against non-performing loans. The coverage ratio stood at 72.6%, compared with 73.5% a month earlier.
Among small and medium-sized enterprises (SMEs), which are included in the category of non-financial corporations, total lending amounted to €8.853 billion. Non-performing loans accounted for €308 million. Their share remained unchanged at 3.5% compared with June. Loans more than 90 days past due totaled €211 million. Total restructured loans reached €265 million, of which €165 million were still classified as non-performing.
Accumulated provisions for SMEs also totaled €265 million. Of this amount, €227 million related to non-performing loans. The coverage ratio for non-performing loans fell to 73.6%, compared with 75% in June.
Households and Other Financial Corporations
Among the main categories of borrowers, households continued to have the highest share of non-performing loans. In July 2026, the figure fell to 4.2%, compared with 4.3% a month earlier. Total household lending stood at €10.970 billion. Non-performing loans amounted to €458 million, compared with €464 million in June. Loans more than 90 days past due totaled €375 million. Restructured loans amounted to €205 million, of which €114 million remained classified as non-performing.
Total accumulated provisions for household loans stood at €281 million. Of this amount, €261 million related to non-performing loans. The coverage ratio for non-performing loans edged up to 56.9%, compared with 56.8% in June.
Among other financial corporations, total lending reached €2.879 billion. Non-performing loans amounted to €31 million. The same amount was recorded for loans more than 90 days past due. Total restructured loans stood at €83 million, of which €22 million were still considered non-performing. The share of non-performing loans remained unchanged at 1.1%, while their coverage ratio increased to 96.6% from 95.3% in June. Total accumulated provisions amounted to €49 million, of which €30 million were set aside against non-performing loans.