Home Non-Performing Loans NPLs remain at 18 per cent of total bank loans

NPLs remain at 18 per cent of total bank loans

Cyprus NPLs

Statistics published by the Cyprus Central Bank reveal that non-performing loans (NPLs) in May 2021 accounted for 18.07% of total bank loans; unchanged from April 2021.

According to the Central Bank, NPLs stood at €5.134 billion in May, a fall of approximately €7 million from April’s figure of €5.141 billion as follows:

  • General governments – €218,000.
  • Other financial corporations – €215.7 million.
  • Non-financial corporations – €2.158 billion (of which €1.782 billion by SMEs.)
  • Households – €2.761 billion.

But while the percentage of NPLs remained the same, the total accumulated impairment (provisions) increased to 47.6%.

At the end of 2020, non-performing loans were estimated at €5.111 billion, down from €8.972 billion in 2019.

Total restructured loans amounted to €3.833 billion, of which €2.311 billion continue to be classified as non-performing loans.

In addition, total accumulated impairment (provisions) at the end of May were estimated to be €2.618 billion, up from April’s figure of €2.598 billion.

NPLs the plan

It is anticipated that once the transformation of KEPIDES into a bad bank is completed and its purchase of non-performing loans from the financial institutions gets underway, NPLs will reduce sharply.

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