NON-PERFORMING Loans (NPLs) in the Cypriot financial system stood at 47.66% of total loans at the end of August 2014, from 46.94% in the previous month, according to data released on Wednesday by the Central Bank of Cyprus.
However, despite the increase in percentage, NPLs fell in August in real terms by €55 million to €27.90 billion from €27.95 billion in the previous month. This is due to the repayment of a total amount of €1.01 billion of loans in August, decreasing the total amount of loans to €58.54 billion from €59.56 billion in July 2014.
Since June 2013, when the Central Bank of Cyprus started to publish data on NPLs, the total amount of loans fell by around €10 billion, from €68.62 billion to €58.54 at the end of August 2014.
NPLs that have been restructured and remain classified as NPLs declined in August 2014 to 10.81% compared with 10.94% in July 2014. After restructuring, a 9.62% has been removed from the NPLs classification.
Loans to businesses rose in August 2014 to €32.01 billion, of which 49.11% were classified as NPLs, compared with 49.54% in the previous month.
Loans to individuals and households amounted to €24.26 billion, of which 50.18% were NPLs, compared with 49.82% in the previous month.
With 73.16% of loans classified as NPLs compared to 72.62% in July 2014, the construction sector continued to be the sector with the highest rate of NPLs. Total loans to the sector amounted to €7.50 billion in August, compared to €7.54 billion in June.
The NPLs in the property sector, which is the next big category in corporate loans, decreased to 56.95% of €4.45 billion total loans, compared with 55.92% in the previous month.
In relation to loans to individuals for purchase of immovable property, the total facilities amounted to €14.51 billion in August 2014, with a percentage of 43.57% being classified as NPLs, compared with 43.14% in the previous month.
Consumer loans rose in July to €7.18 billion, of which 60.17% were NPLs, compared with 60% or €7.17 billion in June 2014.
– Cyprus News Agency
Further reading
Non-performing loans August 2014 (Cyprus Central Bank)