The non-performing loans ratio in June fell to 45%, which was also the lowest since December 2014, when the European Banking Authority’s methodology was introduced, the Central Bank of Cyprus said. Compared to June 2016, the amount of non-performing loans fell by €2.3bn and compared to June 2015 by €4.6bn.

The drop in non-performing loans in the sixth month of the year was mainly on €441.9n monthly reduction in delinquent loans of non-financial corporations accompanied by a drop of €137.7m in household non-performing loans, the central bank said. Exposures with 90 days in arrears fell by €692.9m to €17.1bn with the overall credit falling by €38.7m to €49.8bn.

The amount of restructured facilities fell in June by €116.2m to €12.8bn compared to May while the amount of the restructured loans being serviced dropped by €203.7m to €8.9bn, the central bank said. As expected following the announcement of Bank of Cyprus and Hellenic Bank in August and September respectively to increase their provisioning levels, the total amount of provisions for loan impairments rose in June by €654.2m in a month to €10.5bn.

Source: Cyprus Mail