The Central Bank of Cyprus (CBC) on Friday reported that 94 per cent of loans held by credit acquisition companies were categorised as non-performing (NPLs) as of June 30, 2024.
The report indicates a total loan balance of €20.98 billion, distributed almost equally between individuals (€10.64 billion) and businesses (€10.34 billion).
Of these, non-performing loans amounted to €19.66 billion, leaving just €1.31 billion classified as performing loans.
The figures underscore the persistent challenges facing Cyprus’ financial sector despite years of recovery efforts since the financial crisis.
The data also highlights the role of credit acquisition companies in managing distressed loans, which comprise the majority of their portfolios.
In addition to loan statistics, the report also provided insight into real estate holdings.
Credit acquisition companies held a total of 7,610 properties valued at €1.11 billion, reflecting their role in recovering value from foreclosures and other measures.
It should be noted that according to CBC report released earlier this month, non-performing loans (NPLs) in Cyprus fell by €15 million in August 2024 to €1.63 billion, with the NPL ratio steady at 6.8 per cent.
Household NPLs totalled €916 million, while corporate NPLs reached €682 million.
Moreover, total loans declined slightly to €24.05 billion, and NPL coverage improved to 55.3 per cent, while restructured loans increased to €1.36 billion.
