CYPRUS: NPLs up in October

Non-performing loans (NPLs) in Cypriot banks rose in October by EUR 101 mln, the Central Bank of Cyprus said, but cited data that suggest a gradual reduction of NPLs through restructurings.

The total value of NPLs was EUR 27.4 bln in October, from 27.3 bln in September.
“Despite the increase observed in October, according to preliminary figures for the end of November 2015 a slight decrease is expected in non-performing loans,” the Central Bank said in a statement.
By the end of October restructured loans amounted to EUR 14.2 bln, of which 10.7 bln will count as non-performing loans for a period of at least 12 months even if the borrower repays according to the restructuring agreement.
The central bank said that there was an increase of EUR 287 mln in restructured loans.
“It appears that 72% of term loans which were restructured between January 1, 2014 and October 31, 2015 adhere to the new repayment schedule agreed under the restructuring” the central bank said.
“These data create reasonable expectations for a gradual reduction of NPLs through restructuring,” it added.