Despite the intense uncertainty caused recently by the discussion about changes in the foreclosure framework, market data show a different picture from the one that dominates the public debate. In just one year, the book volume of non-performing loans (NPLs) has recorded a substantial decrease, confirming that management mechanisms operate even in an environment of institutional instability.
The most revealing data comes from the Credit Acquiring Companies, where most of the problem is today. According to data from the Central Bank of Cyprus, the total balance of loans to these companies decreased from about €20.7 billion at the end of 2024 to approximately €19.9 billion at the end of 2025, recording a decrease of €800 million. within a year.
Even more indicative is the course of the non-performing loans themselves. The stock of NPLs in Credit Acquiring Companies declined from approximately €17.3 billion to approximately €16.6 billion, i.e. a decrease approaching €700 million on an annual basis.
This development becomes particularly important if we take into account that these are the most "difficult" part of the market, i.e. loans that in many cases are old, with limited chances of recovery and with borrowers who for years had not met their obligations. And yet, despite this, but also despite the unstable institutional environment, the market managed to substantially reduce the problem. And even without there being extreme situations of foreclosures, if we believe that this is indeed the quilt for which the fight is taking place.
Even more interesting is the fact that the actual progress is estimated to be greater than that reflected in the numbers. This is because the data published by the CBC record the accounting picture of loans at a specific point in time and not the real one, without fully reflecting the dynamics of the restructurings and consensual settlements that are underway. And let's explain, interest is added to an NPL based on its balance. So, every time the loan is interested, its accounting balance will also increase. So, the total balance is also increasing.
