Financial Mirror (Cyprus)
Toxic bank loans rise to 11.7%
The rate of non-performing loans in the Cyprus banking sector increased to 11.7% of total loans in January from 11.1% at the end of 2021, data released by the Central Bank of Cyprus on Thursday show.
NPLs, as defined by the European Banking Authority – non-payment for over 90 days -, in January rose to EUR 3.006 bln from EUR 3 bln at the end of December 2021.
The CBC said the loan coverage ratio is up to 43.6% from 43.1% in the previous month.
Furthermore, total loans in 2021 declined from EUR 27.01 bln at the end of December to EUR 25.56 bln in the month after.
The Central Bank said the large reduction in total lending is mainly due to loan repayments.
Since 31 December 2014, NPLs have exhibited a reduction of EUR 24.3 bln or 89%, the CBC said.