Reduction of non-performing loans in the Cyprus banking sector

The latest figures on non-performing loans in the Cyprus banking sector published by the Central Bank of Cyprus show that progress is continuing to be made in reducing non-performing facilities.

The latest aggregate figures for the domestic operations of credit institutions operating in Cyprus show total non-performing facilities of €22,362 million at 31 July 2017, compared with €22,420 million at 30 June 2017 and €23,170 million at 31 March 2017. The reduction achieved in July was 0.26%, compared with an average reduction of 1.08% per month in the preceding quarter.

Total facilities were €49,460 million at 31 July 2017, compared with €49,820 million at 30 June 2017 and €50,401 million at 31 March 2017. The percentage of facilities classified as non-performing fell rose from 45.0% at the end of June 2017 to 45.2% at the end of July.

Total impairment provisions made against non-performing debt were €10,467 million at 31 July 2017, compared with €10,463 million at 30 June 2017 and €9.875 million at 31 March 2017, leaving 46.8% of non-performing debt covered by provisions at 30 June 2017, compared with 46.7% a month earlier and 42.6% at the end of March 2017.

While the pace of reduction is slow, reflecting the difficulty of the task, progress is nevertheless continuing to be made.