According to the latest data published by the Central Bank of Cyprus (CBC) on Tuesday, October 26, the volume of non-performing bank loans decreased slightly in July 2021 - to 4.979 million euros.
A month earlier this figure was 4.987 million euros.
As you may know, in accordance with the directive of the European Banking Authority, problem loans include restructured loans, which are considered as non-performing loans for at least one year.
The total volume of loans at the end of July 2021 was 28.528 million euros (28.391 million euros were at the end of the previous month). At the same time, the volume of loans overdue for more than 90 days, which do not include restructured properties, decreased from 17.6% at the end of June 2021 to 17.4% at the end of July 2021.
The coverage ratio rose to 47% at the end of July 2021 (46.8% at the end of June 2021).
The total amount of loans restructured by the end of July 2021 is €4.133 million, of which €2.383 million is still included in non-performing loans.
It is worth noting that 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.