A further decline of € 17 million was recorded in total non-performing loans in October 2020 compared to the end of September 2020.
According to an announcement by the Central Bank of Cyprus (CBC), total lending increased from € 29,992 million at the end of September 2020 to € 30,120 million at the end of October 2020, showing an increase of € 128 million.
As a result, the ratio of non-performing loans to total loans decreased from 21.1% at the end of September 2020 compared to 20.9% at the end of October 2020. The coverage ratio reached 53.9% at the end of October compared to 53.1% at the end of September 2020.
The total loans restructured until the end of October 2020 amount to € 4,051 compared to € 4,096 million at the end of September 2020 of which € 2,916 million are still included in non-performing loans.
It is noted that in determining non-performing loans, credit institutions have an obligation to apply the definition adopted by the European Banking Authority, according to which when a non-performing loan is restructured it is not automatically transferred to non-performing loans but remains unattended. serviced loans for an additional period of at least 12 months, even if the borrower follows the newly agreed repayment schedule without delay. Therefore, according to the relevant definition, a part of the restructured loans remains non-performing even if the borrower adheres to the new repayment schedule.