Banks performance in tackling NPLs drops in Q1, CBC says

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By Stelios Orphanides

The Central Bank of Cyprus said that Cypriot banks made less progress than expected in the first quarter of the year in meeting the four target indicators for reducing non-performing loans.

The banks only exceeded in the indicator on the proposed sustainable solutions as a percentage of the loans presenting arrears over 90 days, with a ratio of 16.7 per cent, 2.08 per cent above the target, the Central Bank said in a statement on its website on Thursday. In the last quarter of 2016, the banks posted a 21.84 per cent ratio.

On the other hand, Cypriot lenders scored only 7.17 per cent in concluding sustainable solutions as a percentage of loans representing arrears over 90 days in January to March, against a target ratio of 15.07 per cent and a conclusion ratio of 11.28 per cent in the quarter before, the central bank said.

The percentage of loans restructured after the beginning of 2014 until the end of the fourth quarter of 2016 with their restructuring terms being met translating into less than 8 days in arrears, banks posted a 68.68 per cent ratio, against a 72.19 per cent indicator, the central bank said.

Finally, the aggregate arrears cure ratio of loans that presented arrears over 30 days and up to 90 days at the beginning of the quarter and by the end of the quarter did not present any arrears, was 33.27 per cent against a target indicator of 44.53 per cent in the first quarter, the central bank said. In the previous quarter, the reported ratio was 42.87 per cent.

By the end of the first quarter, non-performing loans fell by €637.6m to €23.2bn compared to December, and accounted for 46 per cent of total loans.,

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About Author

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

  • Bob Ellis

    The lowest hanging fruit is always the easiest.

  • Sink the EU

    Tackling NPLs means an immediate and severe blow to property values in the island.

  • Eye on Cyprus

    With a 7.17 per cent conclusion from 16.7 per cent proposals; it would appear that more than half of the debtors are quite happy with the status quo.

  • Philippos

    Oh Dear! Attention Span has reached its limit, maybe? Are we back in ‘daksi mpre, territory? After all the doomsayers, we are still here, so really there isn’t a problem to be solved in any kind of a hurry. Etsi den einai;

  • Douglas

    Face reality and start evicting and send empty properties to auctions,NPL figures will soon drop and future potential property buyers will realize they have to service their mortgage or face the consequences.