CYPRUS: NPL cover rises again

The coverage ratio of non-performing loans or ‘non-performing facilities’ (NPFs) rose to 46.7% at end-June, compared with 42.6% at the end of March, the Central Bank of Cyprus reported.

The data showed that during the second quarter of 2017 there was a further decrease of EUR 750 mln or 3.2% in aggregate NPFs compared with the end of March, with the largest part of the fall totalling EUR 610 mln in June. Total facilities declined by EUR 582 mln from EUR 50.401 mln at end-March to EUR 49.820 mln at the end of June.

The Central Bank said that during the period between end-December 2014 and the end of March 2017, there was an overall drop in NPFs of EUR 4.9 bln or 18%.

The downward trend in NPFs, according to the Central Bank, is attributed to increased restructurings, repayments, settlement of debt through swaps with immovable property that is expected to be sold with the aim of a faster cash collection as well as write-offs.