Insider Business Fewer restructurings, less income

Fewer restructurings, less income

Fewer restructuring of loans and less cash flow towards repayment of debts is the banking system’s state of play over the first quarter of 2019, according to Central Bank of Cyprus data.

The recently-released data shows that this quarter’s cumulative amount of restructured loans stood at €4.7 billion compared to €5.1 billion in the previous one. Loan restructuring over the third quarter of 2018 stood at €5.8 billion, while in the second quarter it was €7.7 billion.

However, after the restructuring of large business debt the situation now seems to be more complicated since pending non-performing loans are of less value and with peculiarities.

Because of this, banks seem to be more aggressive in swapping loans for  real estate considering that a total of 219 properties were acquired over the first quarter of 2019, compared to 149 in the fourth quarter of 2018, 129 in the third quarter and 85 in the second quarter.

Properties sold by banks over the first quarter of 2019 were mainly agricultural fields and plots of land. At the same time, total cash flow towards debt repayment fell to €1.03 billion in the first quarter of 2019 from €1.7 billion in the previous one.

Real estate debt swap in the first quarter of 2019 stood at 4.9% compared to 6.3% in the fourth quarter of 2018. And cash inflow from loans with no delays stood at €848 million in the first quarter of 2019 compared to €1.31 billion in the fourth quarter of 2018 and €1.02 billion in the third quarter of 2018. Cash inflow from loans with a delay of up to 30 days stood at €40 million in the first quarter of 2019, compared to €34 million in the fourth quarter of 2018 and €55 million in the third quarter of 2018.

Cash inflow from loans with a delay of 31 to 60 days was also on the rise. The total amount for the first quarter of 2019 was €20.69 million, compared to €11.95 million in the fourth quarter of 2018, and €11.79 million in the year’s third quarter. In the first quarter of 2018 this stood at €20.38 million.

Moreover, a significant drop in repayments of loans with a delay of 61 to 90 days was recorded. Cash inflow fell to €6.38 million in the first quarter of 2019 compared to €14.18 million in the fourth quarter of 2018 and €11.29 million in the first quarter of 2018.

Read more:

https://in-cyprus.com/panic-over-proposed-changes-to-foreclosures-law/

Top Stories

Coronavirus: 109 new cases, two deaths on Tuesday

The Health Ministry on Tuesday announced the death of two people in Cyprus due to Covid-19. This raises the Mediterranean island’s death toll from the...

Health Minister to announce process of covid measures relaxation on Wednesday

Health Minister Constantinos Ioannou on Wednesday will announce the way the strict coronavirus measures now in effect in Cyprus will be gradually relaxed after...

Scientists in Greece find 20 million year-old petrified tree

Greek scientists on the volcanic island of Lesbos say they have found a rare fossilized tree whose branches and roots are still intact after...

Turkey bans parties at ski resorts after Covid curfew backlash

Turkey has banned music and parties at ski resorts after footage of crowded party scenes provoked anger in a country which has endured two months...

EMGF Agreement set to be ratified on Thursday

The House Foreign Affairs Committee on Tuesday decided to speed up the ratification of the Intergovernmental Agreement on the Statute of the East Mediterranean...

Taste

Squash soup

Ingredients: 1 kg pumpkin, cut into small cubes, approximately 5 cups 2 medium (400g) sweet potatoes, cut into cubes, approximately 2 ½ cups 1 chopped leek, only...

Mezedes

No visit to Cyprus is complete without enjoying the traditional meal of many small dishes known as ‘meze’. This large feast, which has been a...

Prawns with fried cheese, barley shaped pasta

Put the barley shaped pasta into a small pan with salted water, bring to a boil and when tender, drain. Peal the prawns leaving...

Salmon and shrimp sheftalies

Mix all ingredients for tabbouli in a bowl and keep to one side so flavours can combine. Prepare the sheftalies: wash and soak the casing...