The share of non-performing loans in the banking sector of Cyprus decreased to 11.1% of total loans at the end of December 2021, compared to 17.7% at the end of 2020, according to data published by the Central Bank of Cyprus (CBC).
NPLs, as defined by the European Banking Authority, fell to 3,000 million euros in December 2021, a decrease of 1.24 billion euros compared to the previous month, and compared to the end of 2020, NPLs decreased by 2.11 billion euros .
The decrease compared to November was mainly due to the sale of the NPL portfolio by the Bank of Cyprus (Spiral 3), as well as the reclassification of the NPL portfolio by Hellenic Bank.
The loan coverage ratio fell to 43.1% from 48% in the previous month, CBC added.
In addition, total loans at the end of 2021 decreased to 27.01 billion euros from 28.01 billion euros in the previous month.
Of the total non-performing loans at the end of 2020, €1.56 billion were households and €1.17 billion were corporations, of which €0.92 billion were small and medium-sized corporations.
Since December 31, 2014, non-performing loans have decreased by 24.3 billion euros, or 89%, according to the CBC.