The ratio of non-performing loans (NPLs) in the Cypriot banking sector edged up slightly to 6.3 per cent at the end of January 2025, from 6.2 per cent in December 2024, according to updated data published by the Central Bank of Cyprus (CBC) this week.

The figures, which reflect the status of the banking sector as of January 31, 2025, show that the marginal increase in the NPL ratio was primarily due to negative reclassifications within NPL categories and foreign exchange fluctuations.

The coverage ratio of NPLs by credit loss provisions remained unchanged at 58.3 per cent, corresponding to €0.9 billion at the end of January.

This level is consistent with that reported at the end of the previous month.

The central bank also reported that the total value of restructured loans within the licensed credit institutions amounted to €1.3 billion by the end of January 2025.

What is more, out of this amount, €0.7 billion continues to be classified as non-performing.