Non-performing facilities down by Euros 653 million in first quarter

Non-performing facilities (NPFs) decreased further by Euros 653 million or 3.2% in the first quarter of the year, compared to December 2017, the Central Bank of Cyprus reported on Wednesday.

March registered the largest decrease totalling Euros 2.074 million, in the first quarter of 2018. NPFs stood at Euros 21.9 billion in February.

Central Bank figures showed that total facilities declined by Euros 749 million or 1.6% from Euros 47.081 million at end of December 2017 to Euros 46.332 million in March 2018, leading to a drop in the ratio of NPFs to total facilities from 43.7% at the end of December 2017 to 43% in the third month of the year.

Between December 2014 and March 2018 there has been an overall decrease in NPFs of Euros 7.4 billion or 27.1%. The coverage ratio increased to 48.5% at the end of March 2018 compared to 46.8% at the end of December 2017.

Total restructured facilities at the end of March 2018 amounted to Euros 11.396 million, of which Euros 8.260 million are still classified as NPFs, partly due to the definition of NPFs, based on which a restructured NPF remains under observation within the NPF category for a further period of at least 12 months.

A net reduction in restructured facilities of Euros 425 million was recorded at the end of March 2018, compared to end-December 2017.

Households held the largest part of NPFs amounting to Euros 10.80 billion or 53.6% of total NPFs, whereas enterprises held NPFs of Euros 8.65 billion or 48.4% of total NPFs.

Source: Cyprus News Agency