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NPLs reached €26.25 billion in November 2013

Figures released by the Cyprus Central Bank reveal a worrying increase in non-performing loans with bad loans accounting for 35.2 percent of the €7.25 billion credit facilities granted to the construction sector.

central bank of cyprus NPLsNON-PERFORMING loans (NPLs) in commercial banks and cooperative credit institutions rose to €26.25 billion in November 2013, according to figures released by the Cyprus Central Bank (CBC).

Compared with September 2013 NPLs recorded an increase of 4.0 per cent or €1.01 billion

NPLs in commercial banks reached 39.11 per cent of total loans which in absolute numbers corresponds to €20.29 billion, whereas NPLs in the cooperative sector reached 44.39 per cent of total loans or €5.96 billion.

The most problematic loans in the banking sector were the credit facilities granted to the construction sector that reached €7.25 billion of which 35.2 per cent are considered as non-performing.  Loans to individuals on November 30 amounted to €15.14 billion of which 61.44 per cent fall in the NPL category.

Restructured loans reached 14.25 per cent of total credit facilities.

NPLs in the Cooperative sector reached an even higher ratio climbing to 44.93 per cent of total loans that on November 30 reached €13.42 billion, whereas only 4.63 per cent of total loans have been restructured.

According to the CBC figures the lion’s share in total Coops loans were granted to individuals, with €10.49 billion, of which 53.86 per cent are non-performing, whereas €5.19 billion were granted for the purchase of immovable property.

Credit facilities to companies reached €2.93 billion.

Readers' comments

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  • Stuart says:

    Until recently, the Cyprus Central Bank did not even consider a loan to be ‘non-performing’ if it was not being repaid provided it was covered by adequate collateral. This naive situation has had to change.

    Since the IMF has insisted that all loans that have had no capital or interest repaid within the last 90 days are to be considered ‘non-performing’ (whether covered by collateral or not) the true reality of the situation has now emerged.

    From a figure of €20.75 billion in mid 2012, we have now managed to reach €26.25 billion in November 2013 – an increase of €5.5 billion in under 18 months. But why stop there?

  • M Hannah says:

    Well that looks like 26.25 Billion Euro gone for a Burton. They will never see that again.

  • Steve.R says:

    Since Troika came on board the true figures are starting to emerge instead of all the glossed over figures.

  • Yasonas says:

    Would you pay for something that you couldn’t prove you owned, couldn’t sell or might not own anyway. I think that’s what they call a no brainer!

  • Mike says:

    Is anyone surprised? I wouldn’t think so.

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