articles | 21 July 2016

Cyprus' NPLs drop to €25.4bn in May 2016

The amount of non-performing loans in the Cypriot banking system fell by €144.3m from April to May 2016, and by €1.6bn compared with May 2015, to below €25.4bn, which is the lowest since December 2014 when the current methodology was introduced, the Central Bank of Cyprus said.

In May, 90-days-past-due loans fell by €116.2m in a month and almost €3bn in a year to €19.3bn, the central Bank said. “From the above figures, it emerges that the downward trend in non-performing exposures continues,” it continued.

Still, as a result of a strong deleveraging in May which exceeded €2bn in a month, reducing overall outstanding gross loans to €51bn, the lowest since December 2014, the non-performing loan ratio rose to 49.7% from 48.1% in April and 46% in May 2015, the supervisor added. Restructured facilities rose by €124.8m to almost €14bn in May from April with €10.5bn of them included in the non-performing figure.

The drop in non-performing loans in May was mainly on a drop in company loans, the Central Bank said. Non-performing loans of non-financial corporations fell by €91.8m in a month to below €12.5bn for the first time since the introduction of the European Banking Authority methodology, while those of other financial corporations fell by €33.7m to €344.7m.

Household bad loans, fell by €22.8m in May from April and continue to remain over the €12.5m mark.

Source: Cyprus Mail

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