Bad loans reduce slightly to €9.7 bln

Non-performing facilities in Cyprus banks recorded a slight decrease of around €1.4 mln in August 2019 compared to the previous month with total NPFs representing 29.3% of total loans.

According to data released by the Central Bank of Cyprus (CBC), as of 31 August 2019, total NPFs decreased to €9.667 bln, compared to €9.681 bln in July and €10.260 bln at the end of 2018.

The share of NPFs against total lending fell slightly to 29.3%, from 29.6% in the previous month.

Households held the largest share of NPFs, which declined in August to € 4.965 bln or 36.7% from €4.971 bln in July and €5.165 bln at the end of 2018.

Non-financial corporations were next with NPFs worth €4.378 bln or 29.4% of total loans, up from €4.389 bln in July and €4.764 bln at the end of 2018.

About €3.702 bln of corporation’s NPFs (84.5%) belong to SMEs.

Overdue loans for over 90 days increased to €7.834 bln from €7.794 bln in the previous month, equivalent to 23.7% of total loans.

Restructured loans decreased to €6.009 bln from €6.071 bln in July and amounted to 18.2% of total loans of which €4.315 bln remain NPFs.

Total accumulated provisions amounted to €5.151 bln or 51.5%.