Cyprus Mail

Non-performing loans drop by €76m to €24.6bn

Non-performing loans in the Cypriot banking system dropped for the seventh consecutive month by €76m in August to €24.6bn, a new post December 2014 low, after falling by €69.5m the month before, the Central Bank of Cyprus said.

The overall drop was mainly on reduced bad loans of non-financial corporations, which fell by €117.3m in August to €11.8bn, and includes a €64m drop of bad loans of small and medium size enterprises to €€8.4bn, the central bank said in a statement on its website on Friday. Household non-performing loans rose by €9.4m to €12.3m, while those of other financial corporations rose by €28.3m to €388m.

“From the above data it emerges that the downward trend in aggregate non-performing exposures of banks continues,” the central bank said and added that it will provide further evaluating comment after the completion of data collection for the third quarter of the year.

As a percentage of their overall portfolio, non-performing loans dropped in August to 49 per cent from 49.6 per cent as total facilities rose by €445m to €50.1bn, the central bank said. The amount of 90 days past due loans dropped by €51.4m to €18.3m, which is also a new low since December 2014, when the central bank introduced its current methodology of determining non-performing loans.

The amount of restructured facilities in August was €13.7bn, up by €31.4m compared with July, the bank supervisory authority said. The amount of restructured loans being serviced and are in the 12-month probation period before they are classified again as performing rose by €4.7m to €10.3bn.

Since December 2014, the overall drop in non-performing loans amounted to €2.8bn, compared with a €7.1bn drop in overall lending and €3.7bn in loans more than 90 days in arrears, the bank supervisor said. Overall restructured facilities rose by €841.3m while the amount of restructured loans classified as non-performing rose by over €1bn.

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