The percentage of non-performing loans (NPLs) in Cyprus decreased to 5.9% at the end of April 2025, down from 6.1% at the end of March, according to updated aggregate figures released on Friday by the Central Bank of Cyprus.
The Central Bank said the decline in non-performing loans was primarily driven by repayments, positive reclassifications into performing loan categories, loan write-offs, and foreign exchange fluctuations.
More specifically, out of a total of €25.19 billion in loans, €1.49 billion were classified as non-performing by the end of April. Of these, €1.15 billion were overdue by more than 90 days.
Breaking down the data further, 7.7% of all household loans were non-performing. Among business loans, the figure stood at 5.1%, while loans to small and medium-sized enterprises (SMEs) had an NPL rate of 7.3%.
The NPL coverage ratio – which reflects the extent to which bad loans are covered by provisions – increased slightly to 60.7% in April, compared to 60.5% in March 2025.
Additionally, the total volume of restructured loans stood at €1.3 billion at the end of April. Of this, €0.7 billion remained classified as non-performing loans.
The decline in non-performing loans in Cyprus signals ongoing improvements in loan performance across the banking sector, though certain segments, such as SMEs and households, continue to face financial pressures.
Source: CNA
Feature photo source: IndiaMART
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