Tweet

Email

ACCORDING to the latest data from the Central Bank of Cyprus, non-performing loans at the end of January rose to €26.5 billion.

The Central Bank reports that non-performing loans with the commercial banks have reached 40.85% and the co-ops 47.47% of their total loan portfolios, while four of ten loans granted for home purchases are not being serviced. At the end of January 2013, €14.7 billion of the €31.55 billion loans granted to companies were non-performing. Property developers have amassed billions of debts that they are unable to pay. In construction 66.15% (€4.7 billion) of all loans granted are not being serviced, while elsewhere in the real estate sector 47.16% of loans are non-performing. Meanwhile the Bank of Cyprus is reviewing its restructuring plans in a move that could result in billions of euros of its troubled assets being put into a “bad bank” and the Cyprus Government is grappling with legislation to prevent the seizure of “primary residences”.

By: Nigel Howarth