Household debt dropped at the end of March, to 121.2% of the economy, from 126.8% three months before, the central bank said in its indebtedness report, issued twice a year. The indebtedness of non-financial corporations dropped to 144.2%, from 147.9%. Bank credit extended to the non-financial sector fell in March to 221.1%, from 225.8% at the end of December.

The net value of financial assets of households fell in the first quarter of the year to 110% of gross domestic product (GDP), from 113.7% three months before, the bank supervisor said. On the other hand, those of non-financial corporations rose to 204.7%, from 202.1% respectively.

The central bank said non-performing loans were declining, after peaking in February 2015. Yet, the pace of reduction has to accelerate to allow banks finance economic growth.

Source: Cyprus Mail