NPLs con­tinue to rise to 28 bln

Financial Mirror (Cyprus) - - FRONT PAGE -

Non-per­form­ing loans (NPLs) in the is­land’s frag­ile bank­ing sys­tem rose by EUR 317 mln at the end of June, com­pared with the pre­vi­ous month, de­spite a re­duc­tion in the to­tal amount of loans, ac­cord­ing to data re­leased by the Cen­tral Bank of Cyprus.

The rea­son for this lies in the def­i­ni­tion of an NPL, whereby the Troika-rule im­posed by the CBC is any loan that has not been ser­viced for 90 days, but even af­ter pay­ments re­sume, it re­mains an NPL for 6 month.

So, as at June 30, NPLs amounted to 46.5% or EUR 27.81 bln from a to­tal loan amount of EUR 59.80 bln, com­pared with 45.55% or EUR 27.49 bln on May 31, when the to­tal size of all loans was EUR 60.34 bln.

Ac­cord­ing to the new data re­leased by the CBC, the NPLs in the com­mer­cial bank­ing sec­tor amounted in June to 44.65% or EUR 20.78 bln of all loans (EUR 46.54 bln), com­pared to 44.59% or EUR 20.51 bln in the pre­vi­ous month. NPLs in the Co­op­er­a­tive Sec­tor in June amounted to EUR 7.03 bln or 53.02% of their to­tal loans (EUR 13.26 bln), com­pared with EUR 6.98 bln or 52.62% in May.

Cor­po­rate loans in com­mer­cial banks amounted to EUR 29.15 bln in June, of which 49.62% were clas­si­fied as NPLs, com­pared with 48.31% in the pre­vi­ous month.

Loans to in­di­vid­u­als and house­holds rose in June to EUR 13.96 bln, of which 45.22% were NPLs, com­pared with 44.70% in the pre­vi­ous month.

NPLs in the con­struc­tion sec­tor jumped to 72.05% of a to­tal of EUR 7.15 bln, com­pared to 70.12% in May when the to­tal loans were EUR 7.19 bln. NPLs in real es­tate amounted to 54.54% of a to­tal of EUR 4.19 bln, com­pared with 52.52% in the pre­vi­ous month.

Most loans in the Co­op­er­a­tive sec­tor were given to in­di­vid­u­als and house­holds, amount­ing in June to EUR 10.38 bln, of which 55.10% were non-per­form­ing, com­pared to 54.82% in May.

Co­op­er­a­tive loans for real es­tate amounted to EUR 5.11 bln in June, with 46.77% of them clas­si­fied as NPLs, com­pared with 46.55% in the pre­vi­ous month.

Con­sumer loans amounted in June to EUR 4.29 bln, of which 62.93% were NPLs, com­pared to 62.64% in May.

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