Restructured loans continue downward trend in Cyprus

Cyprus’ banking sector maintained its historically low level of non-performing loans in February 2026, according to updated figures published on Friday by the Central Bank of Cyprus (CBC).

Specifically, the non-performing loans ratio remained stable at 1.6 per cent as of February 28, 2026, the bank reported, marking the lowest level recorded since systematic monitoring began.

According to the CBC, total non-performing exposures (NPEs) stood at €833 million at the end of February, compared with €831 million in January, remaining broadly unchanged on a month-on-month basis.

The central bank said that loans overdue by more than 90 days amounted to €649 million, representing 1.3 per cent of total loans.

These delayed loans accounted for approximately 78 per cent of all non-performing exposures in the banking system.

At the same time, restructured loans continued their downward trajectory, declining to €783 million in February 2026 from €807 million in January.

The value of restructured facilities corresponded to 1.5 per cent of total loans, according to the data.

The report also showed a further improvement in the coverage ratio of non-performing loans through accumulated provisions.

Specifically, the coverage ratio increased to 62.4 per cent in February from 62.2 per cent in January.

By institutional sector, the highest level of non-performing loans continued to be recorded among households, where the ratio reached 4.5 per cent.

Among non-financial corporations, the ratio stood at 2.4 per cent.

For small and medium-sized enterprises (SMEs), the corresponding ratio reached 3.5 per cent.

The latest figures also highlighted the significant improvement recorded by the Cypriot banking sector over recent years.

The central bank data showed that the non-performing loans ratio fell steadily from 11.1 per cent in December 2020 to 5.5 per cent in 2021.

The ratio subsequently declined to 4.5 per cent in 2022, 3.7 per cent in 2023 and 3.1 per cent in 2024 before reaching the current level of 1.6 per cent in February 2026.

Meanwhile, total domestic loans in the Cypriot banking sector amounted to €50.93 billion.