Compared to the month before, the drop in delinquent loans in October was mainly on a €26.5m reduction of corporate bad loans which was accompanied by a €25.8m drop in household non-performing loans, the central bank said in a statement on its website on Wednesday. The reduction over the preceding 12-month period was mainly on €1.7bn drop in corporate non-performing loans combined with a €1bn drop of those of households.

On the other hand, the amount of 90-days-past-due loans in October rose by €103.3m in a month to €16.6bn, indicating that the reduction of non-performing loans in recent years continues to face risks, the central bank said. Compared to October 2016, loans in arrears for more than three months dropped by €1.4bn.

The ratio of non-performing loans fell in October to 44.1%, the lowest since the introduction of the current classification methodology in December 2014, which provides for a minimum 12-month probation period of restructured loans before they are classified as performing, the bank supervisor said. In October 2016, it stood at 48.5%.

The amount of restructured facilities dropped by €73bn to €12.3bn in October in a month and €1.3bn in a year, the supervisory authority added. Also, the amount of restructured loans regularly serviced by borrowers dropped by €44m compared to September and by €1.5bn compared to October 2016.

The cure ratio, i.e. the percentage of restructured loans showing no arrears stood in October at 70.3%, down by 4 percentage points in a year, the Central Bank of Cyprus added.

Total provisions in the banking system rose in October by €11.9m to €10.1bn compared to September and by €829.1m compared to October 2016, the central bank said. The ratio of total provisions for loan impairments to total non-performing loans stood at 47% in October.

Source: Cyprus Mail