Insider Business Six economic sectors in Cyprus mark most red loans

Six economic sectors in Cyprus mark most red loans

Cyprus’ banking sector has seen a surge of activity in the last few years and new initiatives and reforms have set banks on a stronger course to tackle the alarmingly high number of red loans of the 2013 financial crisis.

Latest data released yesterday by the Central Bank of Cyprus shows that red loans have been cut in half within a year. And that six are the sectors of the economy with the highest number of non-performing loans.

Top-ranking is the wholesale and retail sector, even though compared to last year it has marked a sharp decline in red loans.

Specifically, the sector’s NPLs stood at €1.3 billion by end of June 2019, and make up 26.8% of the island’s total. Compared with the same period last year, NPLs are down by €278 million.

At the same time, NPLs seem to have shifted from banks’ balance sheets to those of KEDIPES state company that took over the red loans of collapsed Cyprus Co-operative Bank. Red loans have also been shifted to private funds such as Apollo which buys these from banks.

On the other hand, the growth of the economy and tourism’s positive path have also helped in the reduction of NPLs. Along with the granting of citizenship to luxury real estate investors mainly active in building  towers with the prospect that proceeds from these operations will serve developers’ debts.

Specifically, the data shows that red loans have been cut in half within a year. And from €10.2 billion at the end of June 2018, they have fallen to €5 billion by end of June 2019.

The controversial citizenship by investment scheme has certainly helped construction companies bring down their red loans. However, this sector is second placed when it comes to red loans.

At the end of the first half of 2019, non-performing loans in construction were €1.1 billion from €1.8 billion at the end of the first half of 2018. The sector’s non-performing loans constitute 23% of last year’s total, and have been decreased by €617 million.

As for the real estate sector, it is third-placed with non-performing loans standing at €549.8 million and representing 11% of the total by end of June 2019. Industrial enterprises account for 6.8% of total non-performing loans.

The hotel and food sector are ranked sixth with non-performing loans standing at €252 million by end of June 2019 marking a decrease of €113 million from last year when they totaled €365.1 million. The hotel sector has 5% of all non-performing loans.

 

Read more:

https://in-cyprus.com/cyprus-reduces-npls-by-32-02-between-q3-2017-and-q3-2018-ec-report/

 

 

Top Stories

Fifteen new corona virus cases detected out of 3,132 tests

According to the Epidemiological Surveillance Unit of the Ministry of Health 15 new cases of the SARS-CoV-II virus were detected out of a total...

Fifty Cypriots interested to be repatriated, Cyprus sends rescue teams – medical supplies to Lebanon

Cyprus Foreign Affairs Minister Nikos Christodoulides has said that 50 Cypriot nationals have shown interest for repatriation from Lebanon until 14:00 local Cyprus time,...

Unemployed people in Cyprus record monthly drop, annual increase this July

Unemployed people registered at the District Labour Offices on the last day of July 2020, reached 32,313 persons, according to a press release issued...

Cypriot Mission’s departure to Beirut (Videos & Images)

Two police helicopters, with a five-member team of the Catastrophe Response Special Unit and members of the Motorised Rapid Action Unit, as well as...

Greek and Qatari planes supply aid to Beirut after massive explosion

The European Union, Turkey and Gulf states are among those offering assistance to Lebanon following an explosion at a warehouse in Beirut that killed...

Taste

Octopus ‘Kathisto’ (or Octopus braised in Wine)

Ingredients: 1/2 cup Greek extra virgin olive oil 2 medium onions, chopped fine 1 large octopus, about 2kg (cleaned and kept whole) 3/4 cup dry red wine 1/3 cup...

Homemade lemonade

Ingredients: 1 cup lemon juice 1 cup sugar Method: Thoroughly wash the lemons with soap and warm water. Roll each lemon with the palm of your hand, pressing...

‘Striftaria’ mini cheese pies

Ingredients 1 ½ cup milk 2 tbsps. flour 4 tsps. of butter 3 eggs, slightly beaten + 1 extra with 1 tbs. of milk for spreading 1 pack of...

Mini potato canapes baked on salt

Ingredients Serves: 12 1kg small Cypriot potatoes rock salt, as needed 250g salted butter 300ml full fat cremé frâiche 1 pot cod or salmon roe Method Prep:20min › Cook:35min › Ready in:55min Take...