Restructured loans continue downward path

Loan restructuring in the Cypriot banking system in October 2017 declined to a new low since December 2015, according to data released today by the Central Bank of Cyprus (CBC).

Restructured facilities declined to Euros 12,3 billion in October 2017, marking a marginal reduction of Euros 73 million compared with September. According to the CBC figures, the balance of restructured facilities has been declining since August 2016.

Compared with the end of June 2017, restructured loans declined by Euros 512 million, while compared with the corresponding period of 2016 loan restructuring declined by Euros 1.3 billion.

According to figures released by the CBC, approximately 50% of total non-performing loans in Cyprus’ banking system are considered as terminated which means that such loans cannot be restructured and their settlement will require a legal procedure.

Furthermore, total non-performing exposures (NPEs) in October 2017 declined by Euros 51 million to Euros 21.42 billion representing 44.1% of total loans.

Total loans increased by Euros 58 million to Euros 48.61 billion in October 2017.

In October a total of Euros 44 million of restructured loans migrated to the performing loan portfolio. The total restructured facilities considered as non-performing (according to the EBA definition) amounted to Euros 8.64 billion in September 2017.

Since December 2014, total non-performing exposures declined by Euros 5.90 billion, while total loans declined by Euros 8.60 billion in October 2017.

From the total NPEs, 52.6% or Euros 11.28 billion were held by households and 45% or Euros 9.62 billion were corporate loans.

Accumulated provisions in October 2017 amounted to Euros 10.08 billion or 47% of total NPEs, the CBC said.

Source: Cyprus News Agency