The Central Bank of Cyprus said that the amount of non-performing loans fell by €431.6m in September in a month to €24.1bn, the lowest since December 2014, against a drop of total loans by €491.6m to €49.6bn.
The overall drop in non-performing loans in September was mainly on a €412.8m drop in bad corporate loans to €11.4bn in a month, which includes a decline by €189m of small and medium size company loans to €8.2bn, the central bank said in a statement on its website on Friday. Household non-performing loans fell by only €15.3m to €12.3bn, while that of other financial corporations rose by less than €0.7m to €388.7m.
At the end of September, the non-performing loan ratio in the banking system fell to 48.6 per cent of the total portfolio, which practically unchanged compared to December 201, when the current methodology to determine non-performing loans came into effect, the central bank said.
In September, while the overall amount of restructured loans dropped by €110.8m to €13.6bn, the ratio of restructured loans continued its steady rise for 21 months in row to 56.3 per cent as a percentage of total facilities. Restructured loans are categorised as non-performing during an one-year probation period.
Loans with 90 days past due dropped by €314.4m to below €18bn.