The total value of non-performing exposures (NPEs) in Cyprus dropped to €1.6 billion by the end of September 2024, down from €1.7 billion in June.

This decrease brought the NPE ratio to 6.5 per cent of total loans, an improvement from 6.9 per cent in June, according to the Central Bank of Cyprus (CBC).

The central bank attributed this reduction to several factors. Firstly, loan repayments, including debt-for-asset swaps involving real estate, played a significant role.

Additionally, loans that were successfully restructured and reclassified as performing after completing the monitoring period contributed to the decline.

Loan write-offs also had an impact, either as part of restructurings with pre-existing provisions or through accounting adjustments already included in banks’ provisions.

At the same time, the coverage ratio for NPEs with loan loss provisions increased to 55.7 per cent, representing €0.9 billion, up from 55.0 per cent in June.

Restructuring activity saw a slight decline, with total restructured loans reaching €1.3 billion by the end of September compared to €1.4 billion in June.

Of all restructured loans, a share of €0.7 billion remain classified as NPEs.