Cyprus banking sector offloads billions in non-performing loans to credit firms

As of June 2026, Cypriot banks have transferred €19.276 billion in non-performing loans to credit acquiring companies. According to Central Bank of Cyprus data, this total comprises €9.345 billion owed by households and €9.205 billion by non-financial enterprises, affecting a total of 62,771 borrowers. Approximately 94.6% of these loans remain non-performing, shifting a significant portion of the financial burden outside the traditional banking system to entities often under foreign ownership.

While this transfer has successfully cleared bank balance sheets and strengthened the systemic stability of the Cypriot economy following the 2013 crisis, it has left tens of thousands of individuals and businesses in a precarious position. These borrowers now face management by credit firms rather than banks, with concerns raised regarding the impact on citizens and the status of their mortgaged properties. The situation highlights the long-term consequences of historical economic adjustments and systemic reforms implemented since the financial crisis.