For the last 8 months, Cyprus banking system noted a decrease of 6.2 bil in total loans, and derived an increase in the proportion of non-performing loans.
The total loans by the end of August 2014 decreased to 58.5 bil from 64.7bil (August 2013)
Companies’ loans dropped from 35.9 bil to 32 bil while individual loans decreased from 24.9 bil to 24.2 bil.
Business sectors, recorded a decrease in loans for Mining and Production companies, and a large loan reduction was recorded in the land development businesses (from 5.4 bil to 4.4 bil).
Companies operating in the financial/insurance sector reduced their loans to 1.3 bil.
Conversely, contractors, traders and hoteliers held their loans in the same level.
In addition, individuals reduced their loans by 700m mainly due to the decrease in demand for land properties.
According to data released by the Central Bank non-performing loans increased from 37.27% to 47.66% of the total loans.