According to data released by the Central Bank of Cyprus, total NPEs dropped from €16.6 billion in end-June to €11.02 billion marking the lowest level since the 2013 financial crisis. From the beginning of 2018 NPEs have dropped by €10 billion.

The percentage of NPEs in the end of September 2018 amounted to 31.8% from 40.3% in end-June and 43% in the end of 2017, while accumulated provisions in the banking system amounted to 51.9% from 48.3% in end-June.

“The downward trend in NPFs can be attributed mainly to the removal of loan portfolio from banking sector transferred to KEDIPES,” the CBC said in press release. Following the sale of the performing operations of the CCB, to Hellenic, the CCB lost its banking licence and has been renamed as Cooperative Asset Management Company establishing a subsidiary named Cyprus Asset Management Company (KEDIPES) which will wind down NPEs amounting to €5.7 billion.

Furthermore, due to the removal of the CCB’ NPEs, households NPEs in end-September halved to €5.32 billion corresponding to 48.3% of total NPEs, while corporate NPEs amounted to €5.35 billion or 48.5% of total NPEs.

Total restructured facilities (NPFs) at end-September 2018 amounted to €7.319 million, of which €4.818 million continue to be classified as NPFs, the CBC said.

Source: Cyprus Mail