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Cyprus Loan Servicing Portfolio Grows To €19.61 Billion In First Quarter

The value of loans managed outside Cyprus’ traditional banking sector continued to increase in the first quarter of 2026, highlighting the scale of the island’s loan servicing market and the continued burden of distressed debt on households and businesses.

Loan Portfolio Expands By €256 Million

According to figures released by the Central Bank of Cyprus (CBC), the contractual balance of loans managed by Credit Acquiring Companies and Credit Servicing Companies reached €19.61 billion as of March 31, 2026. That was €256 million, or 1.3%, higher than the €19.35 billion recorded at the end of 2025.

Growth was driven primarily by larger household and non-financial corporate portfolios, which accounted for most of the quarterly increase.

Households And Businesses Carry The Largest Burden

Household loans under management totalled €9.67 billion, including €662 million in performing loans and €9.01 billion classified as non-performing. Those exposures related to 55,044 households.

Loans to non-financial corporations amounted to €9.24 billion, comprising €403 million in performing exposures and €8.83 billion in non-performing loans across 9,261 companies.

Compared with the end of December 2025, non-performing balances increased in both the household and corporate segments, while performing loans declined in each. Taken together, the figures suggest that asset quality remains under pressure even as the overall portfolio continues to expand.

Other Financial Corporations Show Modest Improvement

A more positive trend emerged among other financial corporations. Performing loans in that segment increased to €15 million from €6 million at the end of 2025, while non-performing balances edged down to €689 million from €691 million.

Overall, the segment covers 76 financial corporations.

Net Carrying Amount Highlights Recovery Expectations

Although the contractual value of the managed portfolio stood at €19.61 billion, its net carrying amount was significantly lower at €2.84 billion as of March 31, 2026.

This gap reflects the way acquired loan portfolios are valued on the balance sheets of Credit Acquiring Companies. While the contractual balance represents the full amount owed under loan agreements, including accrued interest, the net carrying amount reflects expected future cash flows after taking impairment losses and anticipated recoveries into account.

Overall, the latest data underline the continued importance of Cyprus’ loan servicing industry. While the managed portfolio continued to expand during the first quarter, the predominance of non-performing loans across both household and corporate borrowers shows that legacy debt remains a significant feature of the country’s financial landscape.

Cloudflare Sets New Default To Separate Search Crawlers From AI Bots

Cloudflare has drawn a sharper line between traditional search and artificial intelligence.

Beginning September 15, 2026, the company will change its default settings to block so-called mixed-use crawlers from pages that run ads, unless a site owner chooses otherwise. The policy applies to new Cloudflare customers, new sites created by existing customers, and all current free customers.

A Clearer Divide In Web Access

The shift could materially reshape how AI companies collect web data for model training and agentic products. Cloudflare’s central argument is straightforward: most publishers want their content to remain visible in search and accessible through certain AI services, but they do not want that same material repurposed without compensation.

In Cloudflare’s view, the problem is not crawling itself. It is the blending of three different functions: search, agentic use, and training into a single bot that makes it difficult for website owners to set meaningful boundaries.

The Google Question

Cloudflare pointedly referenced the “world’s largest search engine,” an unmistakable nod to Google, arguing that it has access to roughly twice as much information as rival AI companies because it makes it harder for customers to stay discoverable without also being used for AI.

Google has disputed that framing. The company offers Google Extended, a crawler setting that lets publishers opt out of having content used for training and AI products such as Gemini apps and Vertex AI, without affecting visibility in Google Search. At the same time, Googlebot still crawls for Search and for AI-powered features such as AI Overviews and AI Mode.

Publishers Want Reach, Not Exploitation

Matthew Prince, Cloudflare’s co-founder and chief executive, said the company is moving quickly because the internet is now dominated by machine traffic.

“Now that the majority of traffic on the Internet is non-human, we must go further and act faster so that a sustainable ecosystem can emerge,” Prince said, referring to the recent milestone in which bots surpassed human traffic online sooner than expected.

Prince added that Cloudflare’s tools and partnerships are designed to give publishers more visibility and commercial leverage, while also rewarding AI companies that are transparent about how they use content.

From Pay Per Crawl To Pay Per Use

Cloudflare has increasingly positioned itself as a gatekeeper for publishers looking to assert control in the AI era. The company already offers tools to block AI bots, along with a marketplace called Pay Per Crawl, which lets websites charge AI systems for scraping.

That framework is now expanding into Pay Per Use, which Cloudflare says will allow publishers to charge AI companies when content creates value, not merely when it is fetched. In practical terms, that shifts the economics from extraction to monetization.

Cloudflare says the move may also reduce waste. Its data suggests more than half of crawl traffic from AI bots is spent revisiting pages that have not changed, consuming bandwidth and compute without adding fresh value for either side.

Early Partners Signal The Commercial Model

To launch the new system, Cloudflare is working with Ceramic.ai and You.com. Under the opt-in model, publishers can be paid when their content appears in Ceramic’s AI search results or when You.com accesses premium material.

Cloudflare says other AI companies can adapt the model to fit their own products. The broader message is clear: the era of unrestricted crawling is giving way to one in which access, attribution, and compensation are increasingly negotiated rather than assumed.

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