Insider Business No dent in construction industry's NPLs, despite high-rises and visas

No dent in construction industry’s NPLs, despite high-rises and visas

Problem loans in the construction sector remains very high, despite the various incentives given to investors, ranging from granting Cypriot citizenship to foreigners, licensing the construction of high-rises, and increased movement in the real estate market.

According to the latest data from the Central Bank, at the end of the first quarter of 2018, non-performing loans in the construction sector amounted to €2.93 billion — or 66% of total loans of €4.45 billion in loans. That means that two out of three loans in the construction sector were non-performing.

The tourism sector is at the opposite end of the spectrum: non-performing loans for hotels and restaurants have declined significantly in the past months. They fell to €611 million overall in the end of the first quarter of 2018 and now make up 32% of loans in the industry.

Non-performing loans overall, recorded a decrease of €653 million and amounted to €19.91 billion at the end of the first quarter of 2018.

The coverage ratio rose to 48.5% at the end of March 2018 from 46.8% in December 2017. Problem loans for households amount to €10 billion out of total borrowings of €20.13 billion. Companies hold problem loans amount of €8.65 billion out of total borrowings of €17.88 billion.

Read more

https://in-cyprus.com/news/business/npls2018/

 

 

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