{"id":122373,"date":"2026-02-10T18:52:43","date_gmt":"2026-02-10T16:52:43","guid":{"rendered":"https:\/\/www.lamaisonestates.com\/?p=122373"},"modified":"2026-02-10T18:52:43","modified_gmt":"2026-02-10T16:52:43","slug":"cyprus-bad-loan-ratio-dips-to-4","status":"publish","type":"post","link":"https:\/\/tmpmaison.ihomecrm.net\/he\/cyprus-bad-loan-ratio-dips-to-4\/","title":{"rendered":"Cyprus Bad Loan Ratio Dips to 4%"},"content":{"rendered":"<p data-path-to-node=\"1\">The Cypriot banking sector continues to shed its legacy of &#8216;bad debt&#8217;, with the latest figures showing a marked improvement in asset quality. According to fresh data released by the Central Bank of Cyprus (CBC) on Tuesday, February 10, 2026, the ratio of Non-Performing Loans (NPLs) fell to 4% as of late November 2025.<\/p>\n<p data-path-to-node=\"2\">This figure, which excludes loans to central banks and other credit institutions, represents a steady decline from the 4.2% recorded just one month earlier in October.<\/p>\n<h3 data-path-to-node=\"4\"><b data-path-to-node=\"4\" data-index-in-node=\"0\">Inside the \u20ac1.06 Billion Debt Pool<\/b><\/h3>\n<p data-path-to-node=\"5\">Despite the overall downward trend, the total volume of non-performing debt remains significant, standing at \u20ac1.06 billion out of a total loan portfolio of \u20ac51.59 billion.<\/p>\n<p data-path-to-node=\"6\">The CBC also noted that banks have aggressively pursued debt restructurings to manage risk. Approximately \u20ac1.06 billion in loans have undergone restructuring; however, over half of these, roughly \u20ac541 million are still classified as non-performing under current regulatory standards.<\/p>\n<h3 data-path-to-node=\"8\"><b data-path-to-node=\"8\" data-index-in-node=\"0\">Sector Disparities: SMEs Face Higher Pressure<\/b><\/h3>\n<p data-path-to-node=\"9\">While the national average is improving, the burden of bad debt is not distributed equally across the economy. Small and medium-sized enterprises (SMEs) are currently experiencing the highest level of financial strain.<\/p>\n<table data-path-to-node=\"10\">\n<thead>\n<tr>\n<td><strong>Loan Category<\/strong><\/td>\n<td><strong>NPL Ratio (Nov 2025)<\/strong><\/td>\n<td><strong>Market Sentiment<\/strong><\/td>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td><span data-path-to-node=\"10,1,0,0\"><b data-path-to-node=\"10,1,0,0\" data-index-in-node=\"0\">National Average<\/b><\/span><\/td>\n<td><span data-path-to-node=\"10,1,1,0\"><b data-path-to-node=\"10,1,1,0\" data-index-in-node=\"0\">4.0%<\/b><\/span><\/td>\n<td><span data-path-to-node=\"10,1,2,0\">\ud83d\udcc9 Improving<\/span><\/td>\n<\/tr>\n<tr>\n<td><span data-path-to-node=\"10,2,0,0\"><b data-path-to-node=\"10,2,0,0\" data-index-in-node=\"0\">Non-Financial Corps<\/b><\/span><\/td>\n<td><span data-path-to-node=\"10,2,1,0\"><b data-path-to-node=\"10,2,1,0\" data-index-in-node=\"0\">4.0%<\/b><\/span><\/td>\n<td><span data-path-to-node=\"10,2,2,0\">\u2194\ufe0f Stable<\/span><\/td>\n<\/tr>\n<tr>\n<td><span data-path-to-node=\"10,3,0,0\"><b data-path-to-node=\"10,3,0,0\" data-index-in-node=\"0\">Households<\/b><\/span><\/td>\n<td><span data-path-to-node=\"10,3,1,0\"><b data-path-to-node=\"10,3,1,0\" data-index-in-node=\"0\">4.7%<\/b><\/span><\/td>\n<td><span data-path-to-node=\"10,3,2,0\">\u2194\ufe0f Stable<\/span><\/td>\n<\/tr>\n<tr>\n<td><span data-path-to-node=\"10,4,0,0\"><b data-path-to-node=\"10,4,0,0\" data-index-in-node=\"0\">SMEs<\/b><\/span><\/td>\n<td><span data-path-to-node=\"10,4,1,0\"><b data-path-to-node=\"10,4,1,0\" data-index-in-node=\"0\">6.1%<\/b><\/span><\/td>\n<td><span data-path-to-node=\"10,4,2,0\">\ud83d\udcc8 Increasing<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p data-path-to-node=\"11\">The 6.1% ratio for SMEs highlights the specific challenges faced by smaller local businesses in maintaining debt sustainability compared to larger corporations.<\/p>\n<h3 data-path-to-node=\"13\"><b data-path-to-node=\"13\" data-index-in-node=\"0\">Coverage and Provisioning<\/b><\/h3>\n<p data-path-to-node=\"14\">To protect against potential defaults, Cypriot banks maintain a high coverage ratio, the amount of money set aside in provisions to cover bad loans. As of November 2025, this coverage stood at 70.4%.<\/p>\n<p data-path-to-node=\"15\">Although this is a slight decrease from the 70.7% recorded in October, it remains one of the more robust buffers in the region, ensuring that the banking system is well-insulated against sudden shocks.<\/p>\n<h3 data-path-to-node=\"16\"><b data-path-to-node=\"16\" data-index-in-node=\"0\">The Alternative View: EBA Methodology<\/b><\/h3>\n<p data-path-to-node=\"17\">Using the stricter European Banking Authority (EBA) risk dashboard methodology, which includes loans to central banks and other credit institutions, the NPL ratio remained completely stable at 2.1%. This lower figure is often used by international investors to compare Cyprus&#8217; financial stability against other Eurozone members.<\/p>\n<p data-path-to-node=\"17\"><b data-path-to-node=\"18,0\" data-index-in-node=\"0\">Source:<\/b> Stockwatch.com.cy<\/p>","protected":false},"excerpt":{"rendered":"<p>The Cypriot banking sector continues to shed its legacy of &#8216;bad debt&#8217;, with the latest figures showing a marked improvement in asset quality. According to fresh data released by the Central Bank of Cyprus (CBC) on Tuesday, February 10, 2026, the ratio of Non-Performing Loans (NPLs) fell to 4% as of late November 2025. This [&hellip;]<\/p>","protected":false},"author":9,"featured_media":122374,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[211],"tags":[],"_links":{"self":[{"href":"https:\/\/tmpmaison.ihomecrm.net\/he\/wp-json\/wp\/v2\/posts\/122373"}],"collection":[{"href":"https:\/\/tmpmaison.ihomecrm.net\/he\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tmpmaison.ihomecrm.net\/he\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tmpmaison.ihomecrm.net\/he\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/tmpmaison.ihomecrm.net\/he\/wp-json\/wp\/v2\/comments?post=122373"}],"version-history":[{"count":1,"href":"https:\/\/tmpmaison.ihomecrm.net\/he\/wp-json\/wp\/v2\/posts\/122373\/revisions"}],"predecessor-version":[{"id":122375,"href":"https:\/\/tmpmaison.ihomecrm.net\/he\/wp-json\/wp\/v2\/posts\/122373\/revisions\/122375"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tmpmaison.ihomecrm.net\/he\/wp-json\/wp\/v2\/media\/122374"}],"wp:attachment":[{"href":"https:\/\/tmpmaison.ihomecrm.net\/he\/wp-json\/wp\/v2\/media?parent=122373"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tmpmaison.ihomecrm.net\/he\/wp-json\/wp\/v2\/categories?post=122373"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tmpmaison.ihomecrm.net\/he\/wp-json\/wp\/v2\/tags?post=122373"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}