Cyprus NPLs rise to €26 bln, in November, says central bank

Non-performing loans (NPLs) in commercial banks and cooperative credit institutions accelerated to €26.25 bln by end-November 2013, according to figures released by the Cyprus Central Bank.
Compared with September 2013 NPLs marked an increase of 4.0% or €1.01 bln.
NPLs in commercial banks reached 39.11% of total loans which in absolute numbers corresponds to €20.29 bln, whereas NPLs in the Cooperative sector reached 44.39% of total loans or €5.96 bln.
The Cyprus Bankers Association is at odds with the central bank over the interpretation of NPLs, as imposed by the Troika of international lenders (European Commission, ECB, IMF). The central bank says these are all loans that are not serviced within 90 days and will remain in the pot for a further six months, while banks argue that given the current circumstances and the inability of anyone to repay loans promptly due to strict controls and lack of liquidity, even partial servicing of a loan should allow it be exempted fro the list of NPLs.
According to the central bank, the most problematic loans in the banking sector were the credit facilities granted to the construction sector that reached €7.25 bln of which 35.2% are considered as non-performing. Loans to individuals on November 30 amounted to €15.14 bln of which 61.44% fall in the NPL category. Restructured loans reached 14.25% of total credit facilities.
NPLs in the Cooperative sector reached an even higher ratio climbing to 44.93% of total loans that on November 30 reached €13.42 bln, whereas only 4.63% of total loans have been restructured.
According to central bank figures the lion’s share in total Coops loans were granted to individuals, with €10.49 bln, of which 53.86% are non-performing, whereas €5.19 bln were granted for the purchase of property.
Credit facilities to companies and public organisations amounted to €2.93 bln.