The nonperforming loans (NPL) ratio in Cyprus decreased to 6.5% or 1.6 billion euros at the end of September 2024, from 6.9% or €1.7 billion at the end of June 2024, the Central Bank of Cyprus (CBC) announced on Tuesday.
The coverage ratio of NPLs with provisions increased to 55.7% (or €0.9 billion) at end-September 2024, compared to 55% three months earlier.
The decrease in NPLs during the third quarter of 2024 is mainly attributed, in order of significance, according to the CBC, to: loan repayments (including debt-to-asset swaps), positive migrations of loans which have undergone successful restructuring and have now been reclassified as performing after the end of the surveillance/probation period, and loan write-offs, which take place either in the context of restructuring, and usually concern amounts that already form part of credit institutions’ loan loss provisions, or to non-contractual “accounting” set-offs made against amounts already provided.
The total restructured loans of authorized credit institutions at end-September 2024 amounted to €1.3 billion, of which loans of €0.7 billion continue to be classified as NPLs.