According to data published by the Central Bank of Cyprus, the total volume of loans held in the portfolios of credit-acquiring companies reached €19.35 billion as of December 31, 2025. The overwhelming majority of these loans — €18.22 billion — are non-performing, meaning they are problematic. This represents 94% of the total portfolio. Only €1.13 billion consists of loans that are being serviced normally. This imbalance highlights how serious the issue of “bad” debt remains in the Cypriot economy, despite years of efforts by banks and debt collection agencies.
Households owe nearly €10 billion
Looking at borrower categories, private individuals owe €9.93 billion to credit-acquiring companies. Of this amount, €9.22 billion (93%) are non-performing loans. Only €702 million represents loans that are being repaid on time. Most often, these portfolios include mortgage and consumer loans that banks have written off and sold at a discount.
Corporate sector
Debts owed by companies and organizations amount to €9.43 billion. Of this, €9 billion (95%) are non-performing loans, while only €426 million are performing. The share of non-performing loans among businesses is even higher than among individuals. This suggests that many Cypriot companies have not fully recovered from past economic crises or are still facing liquidity challenges. In total, 61,613 borrowers — both individuals and legal entities — are linked to these credit portfolios.
Real estate in the hands of collectors
Particular attention should be paid to real estate that has come under the ownership of credit-acquiring companies. According to the Central Bank of Cyprus, as of December 31, 2025, there were 8,063 such properties. Their total market value is estimated at €952 million. These are mostly residential houses, apartments, land plots, and commercial properties transferred to collectors as part of debt settlements. Many of these assets have not yet been sold, creating additional pressure on the real estate market.
Why this matters and what’s next
The Central Bank of Cyprus now publishes such data every six months to increase market transparency and keep the public informed. The regulator wants to present a clear picture of the non-performing loan management sector. Experts note that despite the high volume of bad debt, the situation is gradually stabilizing. Many credit-acquiring companies are actively working with borrowers, offering restructuring options and selling collateral assets. However, 94% of non-performing loans in portfolios remains an extremely high figure. For comparison, in healthy economies, the share of non-performing loans among such companies typically does not exceed 20–30%. Cyprus still has many years ahead to fully deal with the legacy of the financial crisis.