Cyprus records the largest decrease on NPLs according to EBA data

Also, according to EBA data, in Cyprus, most of the loans are overdue for more than 5 years, followed by loans overdue between 1 and 5 years.

At the same time, Cyprus was the fifth country with the highest loan sales to address the NPL problem. During 2017, NPL portfolio sales in the EU reached Euros 144 bn, whereas in the first three quarters of 2018 NPL sales stood at Euros 125 bn, with another Euros 60 bn transactions in the pipeline. Most of these deals have been closed in Italy and Spain (Euros 59 bn and Euros 33 bn, respectively), followed by Ireland (Euros 11 bn), Greece (Euros 7 bn), Cyprus (EUR Euros 3 bn) and Portugal (Euros 2 bn).

European-wide, the main impediment identified by banks in the effort to resolve NPLs is a lengthy and expensive judiciary process in the case of insolvency and to enforce collateral, as well as the lack of markets for NPL transactions.

The report also notes that EU banks have considerable exposures to non-EU countries Within the EU, more than 60% of total these exposures was held by banks in the UK and Spain. The main market for UK banks was China, while Spanish banks had material exposure in Mexico, Brazil and Turkey. These exposures were also elevated relative to banks’ total exposures for Hungary, Austria, Italy, the Netherlands, Cyprus and Belgium. Cyprus banking sector main exposure is towards Russia.

Source: Cyprus News Agency