Total loans under management in Cyprus reach €19.61 billion

The value of loans managed outside Cyprus’ banking system increased by €256 million during the first quarter of 2026, according to figures released this week by the Central Bank of Cyprus (CBC), with growth driven primarily by higher household and business loan balances.

The CBC said the contractual balance of all loans managed by Credit Acquiring Companies and Credit Servicing Companies reached €19.61 billion as of March 31, 2026, representing an increase of 1.3 per cent from €19.35 billion at the end of 2025.

The increase was mainly attributed to a €131 million rise in household loans and a €118 million increase in loans to non-financial corporations.

According to the central bank, household loans under management totalled €9.67 billion, of which €662 million were performing and €9.01 billion were non-performing.

These loans were linked to a total of 55,044 households.

Loans to non-financial corporations amounted to €9.24 billion, including €403 million in performing loans and €8.83 billion in non-performing loans.

These exposures related to 9,261 non-financial corporations, the CBC said.

Compared with the end of December 2025, non-performing loans increased for both households and non-financial corporations, while performing loans declined in both categories.

By contrast, the category covering other financial corporations recorded an improvement.

Performing loans in that category increased to €15 million, from €6 million at the end of 2025, while non-performing loans edged down to €689 million, from €691 million.

The loans in this category relate to 76 other financial corporations.

The CBC also reported that the net carrying amount of the managed loan portfolio stood at €2.84 billion as of March 31, 2026, compared with a contractual balance of €19.61 billion.

The central bank explained that the net carrying amount represents the value of a loan as recorded on the balance sheet of a Credit Acquiring Company, after taking into account revisions to expected future cash flows and any impairment losses.

By contrast, the contractual balance reflects the outstanding principal owed by the borrower under the loan agreement, regardless of expected recoveries, provisions or the purchase price of the loan portfolio, and includes accrued interest.