By Stelios Orphanides
Non-performing loans in the Cypriot banking system fell by €388.4m in September to €21.5bn compared to August mainly on reduced corporate delinquent loans, the Central Bank of Cyprus said.
The amount of corporate loans classified as non-performing in September fell in September by €283.3m to €9.6bn mainly on a €194.9m reduction of bad loans of small and medium size enterprises (SME), the central bank said in a statement on its website on Tuesday. Household non-performing loans fell by €131.4m to €11.3bn. Those of other financial corporations rose by €28.2m to €482.5m and those of government bodies fell by €1.8m to €36.7m.
According to the central bank, the amount of non-performing loans as well as their ratio which fell in September to 44.2 per cent, were the lowest since December 2014 when the current classification methodology of the European Banking Authority. The latter provides for a minimum 12-month probation period for a non-performing loan to be re-classified as performing was introduced.
The amount of loans with more than 90 days in arrears was €16.5bn in September, down by €323.9m in September and that of restructured loans fell by €179.7m to €12.4bn, the central bank said. The amount of restructured loans being regularly serviced by borrowers fell by €114.4m last month to €8.7bn giving a cure ratio of 70.2 per cent.
Cypriot banks increased their provisions for loan impairments in September by €35.3m to almost €10.1bn, the bank supervisor said.
In September, total non-performing loans fell by €2.6bn compared to September 2016, the central bank said. Those of non-financial firms and households fell by €1.7bn and €1bn respectively.
Since December 2014, total non-performing loans dropped by €5.9bn, mainly on a €4bn reduction in the case of firms and €1.3bn in the case of households, according to the central bank data.