NPLs down by €650m in March to 46%, CBC says

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By Stelios Orphanides

Non-performing loans in the Cypriot banking system dropped by €650m in March to €23.2bn, the most spectacular monthly drop since June last year, the Central Bank of Cyprus said.

The monthly drop of non-performing debt in March to 46 per cent of total loans, was mainly on a €469.6m reduction of unserviced loans extended to small and medium size enterprises to €9.4bn, the central bank said in a statement on its website on Wednesday. The total corporate non-performing loans reduction was €486.6m to €10.7bn.

Households reduced their non-performing loans by €93.2m to just below €12bn in March compared to February. The reduction in the case of other financial corporations and the general government was by €66m and €4.3m to €450.4m and €39.2m, the bank supervisor said.

The amount of loans with 90 days in arrears was €17.4bn in March, down by €364.1m compared to February, the central bank said. Total loan restructurings dropped by €234.8m to €13.1bn with almost 71 per cent of it considered cured. The accumulated provisions for loan impairments stood at €9.9bn, up by €8.6m.

From December 2014 when the central bank put in place the current methodology in determining non-performing loans, which provides for a minimum 12-month probation period, to March this year, the total amount of non-performing loans fell by €4.1bn against a €6.7bn drop in total lending to €50.5bn, the central bank data show. The drop was mainly on a €2.9bn reduction in delinquent corporate debt followed by a €1.2bn decline in the case of households

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About Author

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

  • Adele

    Unbelievable!!!!

    • Mike

      Truly, it would be interesting to note the new wording of the definitions. Next we will be told the NPL’s are in fact assets on the balance sheet and in fact considered a negative profit to the tune of Billions. Therefore no problem! At the end of the day, no matter how we dress it up we still owe billions plus the interest on it so in my book of prudence that is not good.

      • Adele

        I was being sarcastic Mike!!! I also don’t believe it … How are you Mike? X

      • Adele

        I totally agree Mike … I’ve missed you hope you are well xx Adele…. I’ve had shingles bloody horrible my immune system is low understandable due to my (you know what) x

  • This just means they have been re-negotiated i’m not buying it.

  • LMS

    I’m constantly staggered by these numbers.. By how much money is owed in Cyprus.. Borrowing and not repaying must, literally, have been a career path for many businesses and individuals.

  • Bruce

    We need information on how NPLs are being reduced; whether by write-offs, by swaps for property or other assets, and by actual repayments in order to assess the extent of any real progress in repairing bank and private balance sheets so as to put the economy on less-shaky foundations.It seems that “businessmen” are the prime beneficiaries of loan restructurings involving some questionable debt/property swaps and loan write-offs as well as the “extend and pretend” practices of bankers.