According to the latest data published by the Central Bank of Cyprus on Tuesday, August 25, the volume of NPLs in the country fell in May 2021 to 5.134 million euros.
By the way, a month earlier this figure was 5.141 million euros.
In other words, the number of non-performing loans in the Cypriot banking system decreased by 7 million euros in the fifth month of this year.
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 May 2021 was 28.419 million euros (compared to 28.445 million euros 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, increased to 3.956 million euros in May 2021 compared to April, when it was equal to 3.921 million euros.
At the end of 2020, the volume of non-performing loans amounted to 5.111 million euros, at the end of 2019 - 8.972 million euros.
The total amount of loans restructured by the end of May 2021 was € 3.833 million (this figure was € 3.789 million at the end of April), of which € 2.311 million remained in the form of non-performing loans.
Finally, according to the PPM, the banks' total cumulative forecasts at the end of May 2021 were € 2.618 million, or 47.6%, from € 2.598 million, or 47.2% in April 2021.
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.