The non-performing loans rate in the Cyprus banking sector declined to 11.1% of total loans in the end of December 2021 compared with 17.7% in the end of 2020, data released by the Central Bank of Cyprus (CBC) show.
NPLs, as defined by the European Banking Authority, in December 2021 declined to €3,000 million, marking a reduction of €1.24 billion compared with the previous month, while compared with the end-2020, NPLs marked reduction of €2.11 billion.
The reduction compared with the November was mainly due to NPL portfolio sale carried out by Bank of Cyprus (Helix 3) as well as reclassification of an NPL portfolio by Hellenic Bank.
The loan coverage ratio declined to 43.1% from 48% in the previous month, the CBC added.
Furthermore, total loans in end-2021 declined to €27.01 billion from €28,01 billion in the previous month.
Of the total NPLs in end-2020, €1.56 billion were held by households and €1.17 billion belonged to corporates, of which €0,92 billion were held by small and medium-sized corporations.
Since 31 December 2014 NPLs have exhibited a reduction of €24.3 billion or by 89%, the CBC said.