- Cyprus Property News Magazine - http://www.news.cyprus-property-buyers.com -

Collateral gap at €15 billion

collateral gapINFORMATION tabled in parliament today reveals details of the size of the problem with the balance sheets of the Cypriot banks.

Speaking at the House Institution Committee today the Governor of the Cyprus Central Bank Chrystalla Georghadji disclosed that €14.8 billion of total loans amounting to €60 billion are not covered by collateral.

Of this €14.8 billion collateral gap, €9.8 billion relates to non-performing loans:

The remaining €5.0 billion collateral gap relates to performing loans, including:

The Governor assured MPs that the banks have made provisions to cover the gap noting that “We are slightly relieved from the fact that the provisions made by the banks in regard to non-performing loans, cover the amount for which there is no collateral”.

Banks have made provisions of €10.8 billion for non-performing loans, which amount to €29.2 billion in total.