Toxic bank loans rise to 11.7%

862 views
1 min read

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.