Non-performing loans in the Cyprus banking system accelerated in November with bad loans declining below €6 billion, marking a reduction of €710 million compared with the previous month.
According to Data released by the Central Bank of Cyprus (CBC) NPls (according to the EBA definition) declined to €5.59 billion in the end of November 2020, compared with €6.30 billion the previous month.
The ratio of NPLs to total loans declined to 19.1% in November compared with the previous month, with total loans reduced to €29.3 billion from €31.1 billion in October.
Furthermore, provisions to bad loans declined to 49% in end-November from 54% in the previous month, as banks utilised provisions for loan write downs and contractual write offs.
“The reductions in NPLs and consequently in total exposures is mainly due to contractual write offs or write downs,” the CBC said.
Furthermore, loans with arrears over 90 days dropped to €4.59 billion or 15.6% of total loans in November compared with €5.3 billion or 17.5% of total loans in the month before.
According to the CBC data, of the total NPLs 59% or €3.13 billion comes from households, whereas 41% or €2.33 billion are corporate NPLs, of which €2.04 to small and medium sized enterprises (SMEs).
Total provisions in end-November amounted to 44% for household NPLs, 55% for corporate NPLs, while provisions for SME bad loans amounted to 57.4% the CBC said.