At the end of 2023, non-performing loans (NPLs) in Cyprus' banking system totaled €1.9 billion, marking a reduction of €0.41 billion or 19% compared to the same period in 2022.

According to data from the Central Bank of Cyprus (CBC), NPLs decreased by €106 million compared to November 2023. As a percentage of total loans, NPLs accounted for 7.9% in December 2023, down from 9.5% in December 2022.

Loans that were overdue by more than 90 days stood at €1.47 billion at the end of 2023, compared to €1.83 billion in the same month in 2022, and €1.56 billion in November 2023.

The coverage ratio of NPLs at the end of 2023 was 49.5%.

Of the total NPLs, €1.07 billion belonged to households, while €774 million were attributed to businesses, of which €709 million were small and medium-sized enterprises. The coverage ratio for household ‘red loans’ was 37.6%, while the corresponding ratio for corporate NPLs was 64.8%.

Furthermore, restructured loans at the end of December 2023 amounted to €1.47 billion, compared to €1.73 billion in the previous month. Of these, €0.85 billion continued to be classified as non-performing.