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Banking Sector Sees Little Change In Non-Performing Exposures For May

Non-performing exposures (NPEs) in Cyprus’ banking system remained stable in May 2024, totalling €1.77 billion, a slight decrease from €1.80 billion in April. The NPE ratio stood at 7.4% of total loans. Year-to-date, there has been a modest reduction of €81 million in NPEs.

The Central Bank of Cyprus (CBC) reported that loans overdue by over 90 days were constant at €1.39 billion, comprising 5.8% of total loans. The NPE coverage ratio saw a slight increase to 54.4% from 54.2% in April, with accumulated provisions reaching €786 million.

Restructured facilities in May amounted to €1.42 billion, a marginal decrease from €1.44 billion the previous month. Of these, €0.79 billion were classified as non-performing under the European Banking Authority standards, a slight drop of €4 million from April.

Households held 54% of total NPEs, equivalent to €971 million, while corporations accounted for €760 million, with small and medium-sized enterprises (SMEs) holding €695 million of this amount. Corporate NPEs had a coverage ratio of 69%, compared to 42% for household NPEs.

The CBC’s data underscores the stability of Cyprus’ banking sector despite minor fluctuations. For business professionals and investors, understanding these metrics is crucial for assessing the health and risk factors within the banking system. The consistent levels of NPEs suggest that while there is resilience, ongoing vigilance and strategic management are necessary to maintain financial stability.

Kuwaiti Ambassador Advocates For Strengthened Ties Between Cyprus And GCC Nations

The Kuwaiti Ambassador to Cyprus, Abdullah Musaed Al-Khorafi, has underscored the vital need to deepen dialogue between Kuwait, Cyprus, and the Gulf Cooperation Council (GCC) nations, as well as the broader Arab world. He made these remarks during a luncheon held at his Nicosia residence on February 4, which brought together key diplomatic figures.

The event was hosted in honor of Annita Demetriou, President of the House of Representatives of Cyprus, and was part of a series of high-level diplomatic gatherings organized by the Kuwaiti Embassy in Cyprus. Among the attendees were the ambassadors and heads of Arab diplomatic missions in Cyprus, as well as representatives from the U.S. and Swiss embassies.

Ambassador Al-Khorafi took the opportunity to lead an expanded discussion on pressing regional and international developments, focusing particularly on the Middle East. Topics included the ongoing crises in Syria, Lebanon, and Palestine, with a strong emphasis on how these events affect regional stability.

The luncheon also served as a platform for talks on enhancing cooperation between Cyprus and GCC countries, as well as broader Arab nations. The discussions highlighted opportunities to strengthen ties in key sectors such as education, culture, trade, investment, and tourism. The aim is to build closer connections between people and foster mutual benefits.

In his opening speech, Ambassador Al-Khorafi stressed the importance of promoting dialogue at both governmental and societal levels, not only between Kuwait and Cyprus, but across the entire GCC and Arab world. He expressed his gratitude for the presence of President Demetriou, noting that her participation symbolized Cyprus’ commitment to advancing relations with Kuwait and its regional partners.

President Demetriou, in turn, thanked the ambassador for his hospitality, reflecting on the fruitful discussions and shared goals for enhancing Cyprus’ relations with Kuwait and the wider Arab world. She reaffirmed the importance of cooperation and strategic partnerships between Cyprus and the GCC countries, especially in areas of mutual interest and concern.

This meeting, according to Demetriou, was a testament to the strong diplomatic relations between Cyprus and Kuwait, as well as the ongoing efforts to broaden and deepen ties with the Arab world.

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