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Saturday 11th July 2020
Home Investor Centre Non-performing loans €27.90 billion

Non-performing loans €27.90 billion

NON-PERFORMING Loans (NPLs) in the Cypriot financial system stood at 47.66% of total loans at the end of August 2014, from 46.94% in the previous month, according to data released on Wednesday by the Central Bank of Cyprus.

However, despite the increase in percentage, NPLs fell in August in real terms by €55 million to €27.90 billion from €27.95 billion in the previous month. This is due to the repayment of a total amount of €1.01 billion of loans in August, decreasing the total amount of loans to €58.54 billion from €59.56 billion in July 2014.

Since June 2013, when the Central Bank of Cyprus started to publish data on NPLs, the total amount of loans fell by around €10 billion, from €68.62 billion to €58.54 at the end of August 2014.

NPLs that have been restructured and remain classified as NPLs declined in August 2014 to 10.81% compared with 10.94% in July 2014. After restructuring, a 9.62% has been removed from the NPLs classification.

Loans to businesses rose in August 2014 to €32.01 billion, of which 49.11% were classified as NPLs, compared with 49.54% in the previous month.

Loans to individuals and households amounted to €24.26 billion, of which 50.18% were NPLs, compared with 49.82% in the previous month.

With 73.16% of loans classified as NPLs compared to 72.62% in July 2014, the construction sector continued to be the sector with the highest rate of NPLs. Total loans to the sector amounted to €7.50 billion in August, compared to €7.54 billion in June.

The NPLs in the property sector, which is the next big category in corporate loans, decreased to 56.95% of €4.45 billion total loans, compared with 55.92% in the previous month.

In relation to loans to individuals for purchase of immovable property, the total facilities amounted to €14.51 billion in August 2014, with a percentage of 43.57% being classified as NPLs, compared with 43.14% in the previous month.

Consumer loans rose in July to €7.18 billion, of which 60.17% were NPLs, compared with 60% or €7.17 billion in June 2014.

– Cyprus News Agency

Further reading

Non-performing loans August 2014 (Cyprus Central Bank)


  1. How can the banks embroiled with so many court cases against the population have any credibility, and also have the audacity to blame ~50% of their customers for not repaying their loans?

    The NPL problem lies with the banks: – foreign currency loans; arbitrary increases in profit margin (interest) that have tripled monthly repayments; excessive penalties for not paying these unfair and unaffordable repayments (up to 14% interest); failure to negotiate with any proper understanding nor appreciation of the problem they have caused; general incompetence by bank personnel who clearly lack the know how to run a bank properly; failure to provide a proper service for the benefit of the people, choosing instead to cover their backsides and bonuses with corruption from the top down.

    The banks need to write off all the bad loans as a lesson learnt, and start afresh, and work under proper regulation (that have allowed other countries to recover). Yes, have a bad set of accounts for 1 year, but the resulting recovery will reap profits for the future. The current situation helps no one.

  2. €28 billion divided by the inhabitants of this very tiny island of 800,000, means we all owe? Computer blew a fuse and stopped working when I asked.

    Next problem is how do we get the expats to clear the debt? I mean we can’t allow this to impact on the living standards of the public worker.

  3. Blimey! A year ago we had very little information, now they’ve decided to Bombard us with it! When you take some time to try to interpret the numbers most of the categories seem to show very small ‘ tiny!, improvements! Despite all the %ages and numbers quoted we can see that NPLs %age in Property sector actually increased – as did those for NPLs on Loans to Individuals for purchase of immovable Property. NPLs on Consumer Loans reduced by a tiny, tiny fraction – but are still SIXTY percent.

    Anywhere else in Europe, apart possibly Greece, these %s would be considered Alarming – and! the ‘powers that be’ in RoC have still not decided how to deal with all this. No prizes for guessing why!

  4. @Nigel.
    Thanks for this detailed information on the current varieties of NPL in Cyprus. Having reached €28.88 billion in July this year, is this a world record or is there any other country that has managed to beat this horrendous level of indebtedness?




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