Statistics published by the Cyprus Central Bank reveal that non-performing loans (NPLs) in May 2021 accounted for 18.07% of total bank loans; unchanged from April 2021.
According to the Central Bank, NPLs stood at €5.134 billion in May, a fall of approximately €7 million from April’s figure of €5.141 billion as follows:
- General governments – €218,000.
- Other financial corporations – €215.7 million.
- Non-financial corporations – €2.158 billion (of which €1.782 billion by SMEs.)
- Households – €2.761 billion.
But while the percentage of NPLs remained the same, the total accumulated impairment (provisions) increased to 47.6%.
At the end of 2020, non-performing loans were estimated at €5.111 billion, down from €8.972 billion in 2019.
Total restructured loans amounted to €3.833 billion, of which €2.311 billion continue to be classified as non-performing loans.
In addition, total accumulated impairment (provisions) at the end of May were estimated to be €2.618 billion, up from April’s figure of €2.598 billion.
NPLs the plan
It is anticipated that once the transformation of KEPIDES into a bad bank is completed and its purchase of non-performing loans from the financial institutions gets underway, NPLs will reduce sharply.
