Cyprus has witnessed a decrease of €83 million in non-performing loans (NPLs) in the local banking system at the end of June, dropping from €2.19 billion to €2.11 billion, compared to the previous month.

According to data from the Central Bank of Cyprus (CBC), total loans in the banking system decreased by €99 million in June, totaling €24.41 billion compared to €24.51 billion, resulting in the NPL ratio relative to total loans standing at 8.7 per cent, down from 8.9 per cent the previous month.

Loans with delays exceeding 90 days saw a smaller decrease of €65 million, amounting to €1.66 billion at the end of June compared to €1.73 billion in May, accounting for 6.8 per cent of total loans.

Accumulated provisions in the banking system marginally decreased to €1.17 billion in June from €1.20 billion the previous month, with €1.06 billion allocated to NPLs, resulting in a coverage ratio of 50.4 per cent.

Restructured loans decreased by approximately €270 million, totaling €2.03 billion from €2.29 billion, representing 8.3 per cent of total loans. Restructured loans classified as non-performing also decreased to €0.95 billion in June, down from €0.98 billion the previous month.

Business non-performing facilities were recorded at €0.88 billion in June, down from €0.93 billion the previous month, representing 8.3 per cent of total business loans. The total provisions for business NPLs amounted to 66.5 per cent.

Restructured business loans that continue to be classified as non-performing decreased to €0.47 billion from €0.48 billion the previous month.

In June, household red loans were recorded at €1.19 billion, down from €1.22 billion in the previous month, representing 11.2 per cent of total household loans. Total provisions against household red loans stood at 37.5 per cent.

Restructured household loans that continue to be classified as non-performing were recorded at €0.45 billion in June, down from €0.46 billion in the previous month.