"The analysis of data concerning non-performing (loan) facilities shows that the upward trend noticed in the past has stopped, while during September a drop has been recorded," a CBC statement said.

Non-performing loans shot upwards to around €28 billion, representing over 50% of banks' total loan portfolios after a messy €10-billion bailout of the country in March 2013.

The bailout memorandum provided for strict austerity measures and the restructuring of the banking system, including the first capitalization in the world with the conversion of large amount deposits into bank equity.

CBC said in the statement that one third of NPLs, amounting to €10.4 billion, had actually been restructured by the end of September but were still shown on the red list.

Restructured loans are under surveillance and are being listed as non-performing for 12 months even as they are serviced regularly.

"Data in the possession of the CBC show that the trend of restructuring is on the increase ... having reached €1.3 billion during the third quarter of 2015," the statement said.

It added that 55% of almost 14,000 requests for loan restructuring in the third quarter had been completed and 38% had been moved into October, with 7% having been rejected either by the banks or the loan owners.

The loan restructuring is being facilitated by the office of the financial ombudsman who appoints accredited consultants as intermediaries.

Source: Famagusta Gazette