The rate of non-performing loans in the Cyprus banking sector increased to 11.7% of total loans in January from 11.1% at the end of 2021, data released by the Central Bank of Cyprus on Thursday show.
NPLs, as defined by the European Banking Authority – non-payment for over 90 days – in January rose to €3.006 bln from €3 bln at the end of December 2021.
The CBC said the loan coverage ratio is up to 43.6% from 43.1% in the previous month.
Furthermore, total loans in 2021 declined from €27.01 bln at the end of December to €25.56 bln in the month after.
The Central Bank said the large reduction in total lending is mainly due to loan repayments.
Since 31 December 2014, NPLs have exhibited a reduction of €24.3 bln or 89%, the CBC said.