Central Bank figures compiled by the Cyprus News Agency said NPLs in commercial banks rose to 41.7% of their loanbooks or €20.02 bn from 41.4 % in February.

The rise of NPLs as a percentage and drop in absolute numbers is a result of deleveraging.

NPLs in the Co-op sector reached 50.7% or €6.75 bn, compared with €6.37 bn in February.

Loans granted to businesses by commercial banks reached €30.4 bn in March with 45.7% classified as non-performing.

The largest category concerned the construction sector – €7.2 bn whose majority, 68.3% were non-performing. Loans to households and private individuals dropped slightly to €14.06 bn – 43.5% NPL. Loans used to buy homes or immovable property reached €9.5 bn with 38.8% being problematic.

The Co-op sector had €2.92 bn granted to businesses with 41.7% being NPLs, €10.4 bn to private individuals and households with 53.3% considered non-performing compared with 49.8% in February.

NPLs are even higher among consumer loans in the Co-op sector, reaching 61.4% of the total, which amounted to €4.3 bn. Housing and property loans remained steady but NPLs rose to 45.4% in March from 41.7% the previous month. Commercial banks have so far restructured €6.3 bn worth of loans, raising the number to 13.2% from 11.8%.

Co-ops restructured 4.9% of the loans, or €0.65 bn. Restructuring in the Co-op sector only started recently due to the merger process.

Meanwhile, Cyprus’ gross domestic product (GDP) dropped by 0.7% in the first quarter of the year compared with 0.8% in the last quarter of 2013, the European statistical service Eurostat said on Wednesday.

Source: Cyprus Mail