According to a recent announcement by the Central Bank of Cyprus, the volume of loans managed by debt collection companies reached €19.7 billion as of 30 June 2025. Official statistics show that €18.5 billion (94% of the total portfolio) consists of non-performing loans (NPLs). These figures highlight the extent of the debt repayment issue in Cyprus, which continues to put pressure on the banking sector and the wider economy.
Individuals and legal entities under the burden of debt
Individuals owe €9.9 billion to financial institutions in Cyprus. Of this amount, €9.3 billion is classified as NPLs. Legal entities owe €9.75 billion, of which €9.27 billion is also classified as NPL. These companies manage a total of 69,494 borrowers, comprising individuals and companies.
Real estate as a debt recovery tool
Debt collection companies actively use real estate as collateral. As of mid-2025, they owned 8,079 properties with a total market value of €974 million. This includes residential and commercial buildings, as well as land plots that can be sold to repay debts.
Trends and forecasts
Cyprus financial market experts note that such a high percentage of non-performing loans is linked to the consequences of past economic crises, rising interest rates and inflation. The tightening of lending conditions exerts additional pressure and complicates debt restructuring. It is also worth mentioning that, in 2025, there was a trend towards an increase in the market for the sale of non-performing loans, as well as increased interest from foreign investors in purchasing NPL portfolios and related real estate.