Non-performing loans (NPLs), the bane of the Cypriot banking system, continued to rise in July, recording an increase of approximately €130 million by the end of the month, compared with the previous month of June, according to data released yesterday by the Central Bank of Cyprus (CBC).
According to the data, despite a reduction in the total amount of loans compared to the previous month, NPLs in the Cypriot banking system on July 31, 2014, reached 47.17% (counting for €28.88 billion) of total loans, standing at €61.24 billion.
This marked an increase from June’s figures when NPLs stood at 46.75% (€28.75 billion) of total loans, which amounted to €61.50 billion.
Businesses loans rose in July to €33.81 billion, of which 49.05% were classified as NPLs, compared with 48.81% the previous month.
Loans to individuals and households in July amounted to €25.05 billion, of which 49.09% were NPLs, compared with 48.68% in June.
The construction sector continued to be the sector with the most NPLs in July, with 71.91% of total loans to the sector (€7.68 billion) characterised as non-performing. This registers a slight change from the previous month when 71.74% of total loans (€7.66 billion) were NPLs.
NPLs in the real estate sector, representing a significant part of business loans, decreased from 54.54% in June to 52.87% the following month. Total loans to the sector reached €5.28 billion in July, compared with €5.21 billion the previous month.
Regarding housing loans, NPLs hovered around the same mark, with 42.67% of €14.76 billion in total loans classified as non-performing in July, compared with 42.52% the previous month.
Consumer loans rose slightly in July to €7.41 billion, of which 59.46% were NPLs, compared with 58.63% of €7.40 billion recorded as NPLs in June.
Source: Cyprus Mail