Insider Business Paphos first in Co-op ‘red’ loans

Paphos first in Co-op ‘red’ loans

The co-op is saddled with NPLs, with efforts to reduce them missing their target, a report by the unit responsible for the state’s stake has revealed.

Whereas non-performing loans were expected to be reduced to €5.81 billion (54.86% of total loans), this was not attained. On the contrary NPLs rose by €328.6 million (2.21%) up to €6.14 billion, 57.3% of loans overall. For loans with a delay of 90 days (90 + dpd), the forecast for June predicted that they would fall to around €4.36 billion or 41.19%. Instead, 90 + dpd loans showed a rise of €695.2 million or 6.02%, at €5.06 billion.

On 30/09/2017 the average NPLs for professional co-ops  stood at 19.44%. In Nicosia they stood at 67.71%, in Limassol at 65.87% and in Larnaca-Famagusta at 73.46%. The higher percentage of NPLs appeared at the Paphos Co-operative institutions: there the NPL index declined to 76.96% from a high of 80.23% in December 2015. As a result, the average NPL index declined.

For loans with a 90-day delay, on 30/09/2017 the average for  professional co-operative banks stood at 14.51%, at 54.41% for the co-operative banks of Nicosia, at 53.17% for Limassol co-ops, and at 60,71% for Larnaca – Famagusta co-ops. In Paphos the NPL index declined to 60.19% from a 75.56% in December 2014.

Loans of members of the staff of co-operative banks and CCB which were more than ninety days late, amount to 140 (loans and current) with a total balance of €25.7 million and delays of €12.1 million. Of the 140 accounts, 49 accounts with a total balance of €10.9 million with total delays of €8.5 million have been terminated and are being handled by the Altamira-Debt Recovery Division.

During the period of January 2017 – June 2018, 720 accounts were settled against a total of 1,653 properties, the value of which was €186.8 million. The amount written off was €171.7 million. Between July 2016 and June 2018 auctions involving 436 cases were conducted. Of the 436 cases, 180 did not move forward. The Bank had planned five auctions for June 2018 but two were cancelled due to legal issues, another two due to a real estate repayment and one due to the freezing of the procedure.

For cases undergoing a sale process up to 30% of the loans made by the members of the CCB and the Co-ops staff, which are more than ninety days late, amount to 140 (loans and current loans) with a total balance of €25.7 million and delays of €12.1 million. Of the 140 accounts,49 accounts with a total balance of €10.9 million with total delays of €8.5 million have been terminated and are being handled by Altamira-Debt Recovery Division.

Also, during the period of January 2017 – June 2018, 720 accounts were settled against a total of 1,653 properties, the value of which was €186.8 million. The amount written off was €171.7 million. Between July 2016 and June 2018 auctions were conducted involving 436 cases though a large percentage was again cancelled.

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