Loans managed outside Cyprus banking system rise by €256 million
The value of loans managed outside Cyprus' banking system increased by €256 million during the first quarter of 2026, according to figures released this week by the Central Bank of Cyprus (CBC), with growth driven primarily by higher household and business loan balances. The CBC said the contractual balance of…
Total loans under management in Cyprus reach €19. 61 billionThe value of loans managed outside Cyprus’ banking system increased by €256 million during the first quarter of 2026, according to figures released this week by theCentral Bank of Cyprus (CBC), with growth driven primarily by higher household and business loan balances. The CBC said thecontractual balance of all loans managed by Credit Acquiring Companies and Credit Servicing Companiesreached€19. 61 billionas ofMarch 31, 2026, representing an increase of1. 3 per centfrom€19. 35 billionat the end of 2025. The increase was mainly attributed to a€131 million rise in household loansand a€118 million increase in loans to non-financial corporations. According to the central bank,household loansunder management totalled€9. 67 billion, of which€662 million were performingand€9. 01 billion were non-performing. These loans were linked to a total of55,044 households. Loans tonon-financial corporationsamounted to€9. 24 billion, including€403 million in performing loansand€8. 83 billion in non-performing loans. These exposures related to9,261 non-financial corporations, the CBC said. Compared with the end of December 2025,non-performing loans increasedfor both households and non-financial corporations, whileperforming loans declinedin both categories. By contrast, the category coveringother financial corporationsrecorded an improvement. Performing loans in that category increased to€15 million, from€6 millionat the end of 2025, whilenon-performing loansedged down to€689 million, from€691 million. The loans in this category relate to76 other financial corporations. The CBC also reported that thenet carrying amountof the managed loan portfolio stood at€2. 84 billionas ofMarch 31, 2026, compared with a contractual balance of€19. 61 billion. The central bank explained that thenet carrying amountrepresents the value of a loan as recorded on the balance sheet of aCredit Acquiring Company, after taking into account revisions to expected future cash flows and any impairment losses. By contrast, thecontractual balancereflects the outstanding principal owed by the borrower under the loan agreement, regardless of expected recoveries, provisions or the purchase price of the loan portfolio, and includes accrued interest.