non-performing loans — non-performing loans — The non-performing loan (NPL) ratio of Cypriot banks remains at 5.9% as of May 2025, according to a recent statement from the Central Bank of Cyprus (CBC). This consistent figure, unchanged from April 2025, highlights the stability of the banking sector amidst ongoing economic challenges.
As the CBC reported, the coverage ratio of NPLs by impairment provisions has seen a slight increase, now standing at 61.0%. This is up from 60.7% at the end of the previous month, indicating a proactive approach by banks in managing potential losses.
In terms of loan restructuring, the total amount restructured reached €1.3 billion by the end of May 2025. However, a significant portion of these restructured loans, approximately €0.7 billion, continues to be classified as non-performing, reflecting the ongoing difficulties faced by some borrowers.
This steady NPL ratio is crucial for maintaining confidence in the Cypriot banking system, especially as the sector recovers from past financial crises. The CBC’s data suggests that while challenges remain, the measures taken by financial institutions aim to bolster their resilience and support economic recovery.
As Cypriot banks navigate through these metrics, the focus will likely remain on improving these figures further, ensuring that the banking sector can provide the necessary support for economic growth.
