The Central Bank of Cyprus (CBC) on Thursday reported that total loan balances held by credit-acquiring companies reached €19.35 billion at the end of 2025, with the vast majority classified as non-performing.

According to the central bank, 94 per cent of these loans are non-performing exposures, highlighting the continued burden of distressed debt outside the traditional banking system.

In absolute terms, non-performing loans amounted to €18.22bn, while €1.13bn were classified as performing loans, reflecting a relatively small share of serviced credit.

The figures also showed that total loan balances declined compared with €20.3bn at the end of 2024, indicating a reduction in overall exposure.

At that time, non-performing loans stood at €19.11bn, while performing loans totalled €1.2bn.

This translates into a year-on-year decrease of 4.7 per cent in total loan balances, with a similar decline recorded in non-performing exposures outside the banking system.

On a half-year basis, the figures showed a reduction of €351 million, a decline corresponding to 1.78 per cent, in total loan balances, signalling a gradual downward trend.

Moreover, non-performing loans also fell by €311m, corresponding to a drop of 1.68 per cent, over the same period.

Of the €19.35bn total, €9.93bn relates to individuals, while €9.43bn is attributed to legal entities, indicating a broadly even distribution between households and businesses.

The figures further revealed that non-performing exposure rates remain extremely high, reaching 93 per cent for individuals and 95 per cent for legal entities.

In addition, the central bank reported that credit-acquiring companies held 8,603 properties as of December 31, 2025, reflecting the scale of asset transfers linked to distressed loans.

The total value of these properties stood at €952m, underlining the significant real estate footprint accumulated by these entities.