Still, the ratio of non-performing exposures in the Cypriot banking system rose in October for the fifth consecutive month to 48%, the highest since the introduction of the current methodology in December 2014, the Central Bank of Cyprus said in a statement on its website on Tuesday.

The October increase in non-performing loans was mainly on a monthly rise of household bad debt by €71m to over €12.8bn, and of other financial corporations by €37.9m to €745.7m, or 56.5% and 7.9% respectively, the central bank said. On the other hand, non-financial corporations were able to reduce their non-performing loans in October by €10.1m to below €13.8m, or 57.2%. The figure included a €24m monthly reduction of non-performing loans of small- and medium-sized companies to €9.3m or 64.4%.

The increase in restructured facilities resulted mainly from restructured loans extended to non-financial companies worth €209.7m, the central bank said. The value of household and other financial corporation debt restructured in October was €37m and €40.5m respectively. The ratio of restructured debt to non-performing debt rose in October to 51.9% from 51.1% the month before.

In addition, the ratio of restructured debt which is serviced by borrowers and has to remain for at least 12 months listed as non-performing, rose to 75.3% in October, or €10.7bn from 74.5% in September or €10.4bn, the central bank added.

In October, the value of loans in arrears for 90 days or more rose by €73.5m compared to the month before, to €22.2bn, the central bank said. The increase was mainly on a rise in 90 days past due loans of other financial corporations and households, which offset a drop in loans in arrears extended to non-financial companies.

Source: Cyprus Mail