The amount of corporate loans classified as non-performing in September fell in September by €283.3m to €9.6bn mainly on a €194.9m reduction of bad loans of small and medium size enterprises (SME), the central bank said in a statement on its website on Tuesday. Household non-performing loans fell by €131.4m to €11.3bn. Those of other financial corporations rose by €28.2m to €482.5m and those of government bodies fell by €1.8m to €36.7m.

According to the central bank, the amount of non-performing loans as well as their ratio which fell in September to 44.2%, were the lowest since December 2014 when the current classification methodology of the European Banking Authority. The latter provides for a minimum 12-month probation period for a non-performing loan to be re-classified as performing was introduced.

The amount of loans with more than 90 days in arrears was €16.5bn in September, down by €323.9m in September and that of restructured loans fell by €179.7m to €12.4bn, the central bank said. The amount of restructured loans being regularly serviced by borrowers fell by €114.4m last month to €8.7bn giving a cure ratio of 70.2%.

Cypriot banks increased their provisions for loan impairments in September by €35.3m to almost €10.1bn, the bank supervisor said.

In September, total non-performing loans fell by €2.6bn compared to September 2016, the central bank said. Those of non-financial firms and households fell by €1.7bn and €1bn respectively.

Since December 2014, total non-performing loans dropped by €5.9bn, mainly on a €4bn reduction in the case of firms and €1.3bn in the case of households, according to the central bank data.

Source: Cyprus Mail