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

Problem housing loans below 10 percent

Bank of Cyprus problem housing loans below 10 percentBANK OF CYPRUS’ problematic housing loans account for approximately €1.2 billion (9.4%) of its total non-performing loans of €12.7 billion and just 10.2% of its non-performing loans in Cyprus.

According to the bank’s preliminary results, housing loans are its best performing category of loans as regards the level of non-performing loans.

At the end of last year housing loans totalled €4.4 billion accounting for 21% of the bank’s total loans in Cyprus, which amounted to €21.2 billion.

Non-performing loans in Cyprus for the other categories reported by the bank are considerably higher:

Corporate NPLs 61.4% (€6.2 billion)

SME NPLs 65.9% (€3.0 billion)

Retail (non-housing) NPLs 50.1% (€1.1 billion)

The Greek-language newspaper Politis, reported that 30 big debtors from 45 companies had non-performing loans amounting to €5.26 billion with the Bank of Cyprus; half of all the non-performing loans held by the bank.

The CEO of the Bank of Cyprus has said on numerous occasions that the bank would not pursue mass foreclosures on vulnerable members of society.

On Thursday, opposition parties once again voted to delay the suspension of the foreclosures legislation; this time until 19th March. However this time saying that the suspension was to allow them time to study and pass the five bills comprising the insolvency framework, which is seen as a safety net for distressed borrowers who have pledged their homes and businesses as collateral.