NPLs drop marginally in February to €23.8bn, CBC says

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By Stelios Orphanides

Non-performing loans in the Cypriot banking system fell by a mere €30.6m in February to well above €23.8bn in a month, mainly on increased compliance by households, the central bank said.

From the introduction of the current definition of non-performing loans in December 2014 to February this year, total non-performing loans dropped by €3.5bn, the Central Bank of Cyprus said in a statement on its website on Thursday. Since the end of 2014, outstanding credit dropped by €6.5bn to €50.7bn.

Corporate bad loans dropped in February by €10.3m to €11.2bn compared to January while those of households fell by €27m to €12.1bn, the central bank said. This reduction in non-performing loans was partly offset by a €5.6m increase in exposures of other financial intermediaries and €1.1m by the central government, which includes municipalities.

In February, the total amount of restructured facilities dropped by €152.8m to €13.3bn compared to the month before, the supervisory authority said. Restructured facilities were serviced to 73 per cent.

The total amount of provisions for loan impairments fell marginally to €9.9bn in February compared to the month before, the central bank said.

Cyprus’s high stock of non-performing loans, roughly half of the banks’ total loan portfolio is considered a major risk to Cyprus’s financial stability.

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About Author

Stelios Orphanides is a journalist at CyprusBusinessMail.com. To contact Stelios Orphanides: [email protected]

  • SuzieQ

    Correct me if I’m wrong, but how come a country which is only the size of a small British city, has such huge debts?

    • Didier Ouzaid

      Because money u dont have is still the best way to buy things you cant afford

      • Tyler Durden: I see all this potential, and I see it squandered. God damn it, an entire generation pumping gas, waiting tables – slaves with white collars. Advertising has us chasing cars and clothes, working jobs we hate so we can buy shit we don’t need. We’re the middle children of history, man. No purpose or place. We have no Great War. No Great Depression. Our great war is a spiritual war… Our great depression is our lives. We’ve all been raised on television to believe that one day we’d all be millionaires, and movie gods, and rock stars, but we won’t. We’re slowly learning that fact. And we’re very, very pissed off.

  • JS Gost

    With 20% of the GDP coming from selling passports and the developers still not paying their debts, foreign investment flagging and the NPL’s being massaged every month to look better the future looks pretty bleak. Coupled with a constant stream of representative articles that Cyprus is recovering/changing and a population with rose tinted spectacles welded on spending money they do not have (or should be paying back the NPLs) you can only ask how big the next collapse will be and when.
    Interestingly, Greece has never had personal debt anywhere near Cypriot levels and NPLS have never been above 35%, they have just had their next bailout payment frozen for non compliance and the IMF/ECB/ESM are finally tiring of their antics. Wait until we get the begging bowl out again!

  • desres

    It’s amazing that the people of Cyprus go about their daily business without raising a cry of protest against a system that allows 23 billion to go unpaid. Just think the improvements that could be made in welfare, healthcare,etc if the banks enforced payments.

    • jobanana

      They don’t protest because most are guilty of not paying!

    • Don’t forget the 7.5 billion plundered from the social security account. I think not getting a pension might annoy them down the road.

  • jobanana

    yet still no repossessions……

  • Bruce

    Agree completely with JS Gost and desres. Domestic banks now have NPLs equal to around 57 per cent of their gross loans.Bankers now seem to be engaged in competing to extend loans to finance over-consumption by Cypriots rather than trying seriously to collect loans from so- called strategic defaulters including many cash-rich developers and hoteliers.The too-rosy reports of the IMF and Economic Commission and credit-rating agencies on Cyprus contribute to delaying appropriate action (eg.calling-in loans of hoteliers and selling their collateral) and just try to appease the Minister of Finance and self-serving politicians and top bankers.