Cypriot Banking Sector’s NPL Ratio Remains Steady Amid Strengthening Coverage

by THEFUTURE.TEAM

August 18, 2025

The Cypriot banking sector maintained a non-performing loans (NPL) ratio of 5.9 percent in May, mirroring the level reported in April 2025, according to the Central Bank of Cyprus. This stability underscores a cautious but resilient performance amidst evolving market conditions.

Stable Npl Ratio Highlights Consistency

The persistently steady NPL ratio signals that while banks face ongoing pressures, they are effectively managing risk levels. Maintaining a 5.9 percent ratio suggests that despite potential economic headwinds, the sector’s credit management protocols continue to perform reliably.

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Rising Coverage Ratios Point To Strengthened Reserves

Another encouraging sign comes from the increasing coverage ratio of NPLs by impairment provisions, which climbed from 60.7 percent in April to 61.0 percent at the end of May 2025. This increment in coverage ratios fortifies the banks’ balance sheets, ensuring they have a more robust buffer against potential loan defaults.

Restructured Loans And Their Impact

By the end of May, total restructured loans reached €1.3 billion, of which €0.7 billion remain classified as non-performing. This segment of the portfolio remains a focal point for both regulators and bank management, as it continues to pose challenges amidst efforts to recalibrate and stabilize credit extensions.

In summary, the consistent NPL ratio combined with improved impairment provisions reflects an industry that is not only navigating current challenges but also strategically reinforcing its financial safeguards. As the sector adapts to market dynamics, these indicators will remain crucial for gauging overall financial health and guiding future policy adjustments.

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Nearly 80% Of Cyprus’ Foreign Investment Came From Outside EU In 2025

by THEFUTURE.TEAM

November 11, 2026

Cyprus had the highest share of foreign direct investment (FDI) originating outside the European Union among 14 EU member states reporting data for 2025. According to Eurostat, non-EU economies accounted for 79.4% of the island’s inward FDI, highlighting its distinct position among the reporting countries.

The figures contrast with most other EU economies, where investment from within the bloc remains the main source of foreign capital.

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Cyprus Leads In Non-EU Investment Share

Eurostat measures inward FDI positions by the ultimate investing economy, identifying the economy where the investment ultimately originates rather than only the country through which it is channelled. This distinction is important when investments involve subsidiaries or intermediary holding companies.

In nine of the 14 reporting countries, most foreign investment came from within the EU. The Czech Republic recorded the highest intra-EU share, at 75.1%, followed by Romania at 73.3% and Estonia at 64.8%.

Cyprus was among five countries where non-EU economies accounted for more than half of inward FDI. Spain, Sweden, Greece and Denmark also recorded shares above 50%, ranging from 51% to 55.1%.

US Is The Largest Source Of FDI Across Reporting Countries

Across the 14 countries collectively, the United States was the largest ultimate source of foreign direct investment, accounting for 15.4% of the total.

Germany ranked second at 11.5%, followed by France at 9.4%, the United Kingdom at 9.3% and Switzerland at 5.8%.

These figures reflect the combined investment positions of the reporting countries and do not identify Cyprus’s leading individual investment sources. However, the country-level data underline the island’s strong reliance on capital originating outside the European Union.

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