Cyprus non-performing loans ratio drops to 1.5 percent in July 2026

The Central Bank of Cyprus reported a decline in the banking sector's non-performing loans (NPL) ratio, which fell to 1.5% by the end of July 2026, compared to 1.6% in June 2026. This data, published in October, follows the methodology established by the European Banking Authority for its Risk Dashboard, which encompasses loans and advances to central banks and credit institutions.

In addition to the reduction in NPLs, the provisioning coverage ratio for these loans decreased to 64.5% in July 2026, down from 64.9% in the previous month. The report also highlights that total restructured loans reached €0.7 billion by the end of July. Of this total, loans amounting to €0.3 billion continue to be classified as non-performing.