The Non-Performing Loans (NPL) ratio in the Cypriot banking sector fell to 5.9 per cent at the end of April, down from 6.1 per cent at the end of March, according to figures published by the Central Bank of Cyprus (CBC) on Friday.

The CBC said the decrease was mainly due to repayments, positive reclassifications into performing loan categories, write-offs, and exchange rate fluctuations.

Out of the total loan stock of €25.19 billion, NPLs amounted to €1.49 billion by the end of April, of which €1.15 billion were more than 90 days overdue.

The CBC also mentioned that 7.7 per cent of household loans were classified as non-performing.

In terms of corporate loans, the NPL rate stood at 5.1 per cent, while for small and medium-sized enterprises (SMEs), the figure reached 7.3 per cent.

The coverage ratio of NPLs with loan-loss provisions rose slightly to 60.7 per cent at the end of April 2025, compared to 60.5 per cent at the end of March.

The report also showed that restructured loans totalled €1.3 billion as of April 2025, of which €0.7 billion remained within the NPL category.

Meanwhile, earlier this week, Finance Minister Makis Keravnos said that new schemes to resolve non-performing loans face two key hurdles, namely the need for creditor cooperation and EU approval.

He stressed that there are legal limits in what the government can do, and warned against creating unfair expectations.

Finally, he mentioned that Cyprus’ constitution strongly protects creditor rights through mortgage-backed ownership.