NPLs up in Oc­to­ber

Financial Mirror (Cyprus) - - FRONT PAGE -

Non-per­form­ing loans (NPLs) in Cypriot banks rose in Oc­to­ber by EUR 101 mln, the Cen­tral Bank of Cyprus said, but cited data that sug­gest a grad­ual re­duc­tion of NPLs through re­struc­tur­ings.

The to­tal value of NPLs was EUR 27.4 bln in Oc­to­ber, from 27.3 bln in Septem­ber.

“De­spite the in­crease ob­served in Oc­to­ber, ac­cord­ing to pre­lim­i­nary fig­ures for the end of Novem­ber 2015 a slight de­crease is ex­pected in non-per­form­ing loans,” the Cen­tral Bank said in a state­ment.

By the end of Oc­to­ber re­struc­tured loans amounted to EUR 14.2 bln, of which 10.7 bln will count as non-per­form­ing loans for a pe­riod of at least 12 months even if the bor­rower re­pays ac­cord­ing to the re­struc­tur­ing agree­ment.

The cen­tral bank said that there was an in­crease of EUR 287 mln in re­struc­tured loans.

“It ap­pears that 72% of term loans which were re­struc­tured be­tween Jan­uary 1, 2014 and Oc­to­ber 31, 2015 ad­here to the new re­pay­ment sched­ule agreed un­der the re­struc­tur­ing” the cen­tral bank said.

“Th­ese data cre­ate rea­son­able expectations for a grad­ual re­duc­tion of NPLs through re­struc­tur­ing,” it added.

The Pub­lic Debt Man­age­ment Of­fice sold a to­tal of EUR 120 mln in 13-week Trea­sury Bills at an auc­tion on Mon­day.

The is­sue was over­sub­scribed, while the av­er­age yield was sub­stan­tively lower than the yield at the pre­vi­ous auc­tion in Novem­ber, when a to­tal of EUR 100 mln were sold.

A PDMO an­nounce­ment said that “dur­ing to­day’s 13 Week Trea­sury Bills Auc­tion, ten­ders for a to­tal amount of ap­prox­i­mately EUR 224.9 mln were sub­mit­ted, out of which EUR 120 mn to­tal nom­i­nal value have been ac­cepted with a weighted av­er­age yield of 0.48%. The ac­cepted yields ranged be­tween 0.24% and 0.55%”.

The ac­cepted yields 0.53% - 0.70%, it said.



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