From the introduction of the current definition of non-performing loans in December 2014 to February this year, total non-performing loans dropped by €3.5bn, the Central Bank of Cyprus said in a statement on its website on Thursday. Since the end of 2014, outstanding credit dropped by €6.5bn to €50.7bn.

Corporate bad loans dropped in February by €10.3m to €11.2bn compared to January while those of households fell by €27m to €12.1bn, the central bank said. This reduction in non-performing loans was partly offset by a €5.6m increase in exposures of other financial intermediaries and €1.1m by the central government, which includes municipalities.

In February, the total amount of restructured facilities dropped by €152.8m to €13.3bn compared to the month before, the supervisory authority said. Restructured facilities were serviced to 73%.

The total amount of provisions for loan impairments fell marginally to €9.9bn in February compared to the month before, the central bank said.

Cyprus’ high stock of non-performing loans, roughly half of the banks’ total loan portfolio is considered a major risk to Cyprus’ financial stability.

Source: Cyprus Mail