NON-PERFORMING loans (NPLs) at banks are a concern for the island’s economy with new Central Bank data revealing that bankers lent hundreds of millions without proper examination of customer data or sufficient collateral provided.
This has resulted in most of these loans being up to 100% non-serviceable with huge delays.
The loans of the 20 largest borrowers amount to billions with the biggest problem recorded in Bank of Cyprus (BoC), according to Central Bank data.
At the island’s biggest lender, BoC, the total of non-serviceable loans of the 20 largest debts amount to €3.08 billion, delays amount to 1.32 billion (42.8%) and collateral amounts to just €2.89 billion. Total lending to the 20 borrowers amounts to €3.98 billion.
At Hellenic Bank the total amount of loans is €698 million with €645m being non-serviceable and delays amounting to €263 million (40.7%). The collateral is at €1.01 billion.
At the Co-operative sector the biggest loan amounts to €20.26 million in relation to €478 million at the BoC and €96m at Hellenic Bank.
At Co-ops total of loans of the 20 debtors amount to €195.46m but almost all of it is non-serviceable with €191.14 million.
Author: Editorial