Nicosia: The total outstanding balances of loan agreements managed by Credit Acquiring Companies (CACs) in Cyprus reached £19.351 billion by the end of 2025, with an overwhelming 94% classified as Non-Performing Loans (NPLs).
According to Cyprus News Agency, data released on Thursday by the Central Bank of Cyprus revealed that out of the total, £18.223 billion are NPLs, while £1.128 billion are categorized as performing loans. This represents a significant challenge for the credit sector in managing non-performing assets.
The figures also indicate a decline from the previous year, where at the end of 2024, the total balance of loan agreements held by CACs was £20.303 billion, with NPLs accounting for £19.108 billion and performing loans at £1.195 billion. This marks a 4.7% annual reduction in both the total loan balance and NPLs outside the banking sector.
Further comparison with the first semester of 2025 shows a decrease of £351 million (1.78%) in total loan balances, alongside a reduction of £311 million (1.68%) in NPLs. This trend suggests a gradual improvement in managing non-performing loans, although the high percentage remains a concern.
Of the £19.3 billion in loans, £9.925 billion are attributed to individuals, and £9.426 billion to legal entities, with NPL rates of 93% and 95% respectively. This distribution highlights the widespread impact of non-performing loans across both personal and corporate borrowers.
Additionally, the total real estate portfolio held by CACs as of December 31, 2025, amounted to 8,603 properties, valued at £952 million, indicating a substantial asset base tied to non-performing loans.