Cyprus Credit Acquisition Firms Wrestle With €19.7 Billion Loan Exposure

by THEFUTURE.TEAM

September 9, 2025

Overview Of The Financial Landscape

On June 30, 2025, Cyprus’ credit acquisition companies were reported to hold loans totaling €19.7 billion, as verified by the Central Bank of Cyprus. This figure underscores significant financial exposure within the sector, warranting a comprehensive examination of the underlying challenges.

Non-Performing Loans Dominate The Balance Sheet

Notably, an overwhelming €18.5 billion of the total loans have been classified as non-performing. This represents a staggering 94% of all outstanding loans, indicating severe liquidity and credit quality issues that could have far-reaching implications for both the domestic market and investor confidence.

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Disaggregated Insights: Individuals Vs. Enterprises

The sector’s portfolio reveals stark contrasts between different borrower groups. Loans extended to individuals amounted to €9.9 billion, with €9.3 billion impaired. In parallel, loans to legal entities reached €9.75 billion, of which €9.27 billion were non-performing. These figures reflect common challenges across various client segments and highlight the pervasive nature of credit risks underpinning the industry.

Borrower and Asset Metrics

Credit acquisition companies manage a sizeable clientele of 69,494 borrowers while possessing a property stock of 8,079 units. The real estate portfolio is valued at approximately €974 million. This asset base, although significant, pales in comparison to the immense scale of non-performing liabilities.

Concluding Analysis

The concentration of non-performing loans, dominating 94% of total exposures, raises critical questions about risk management and operational resilience within Cyprus’ credit acquisition firms. Stakeholders and market regulators must closely monitor developments in this segment to mitigate potential systemic risks and safeguard financial stability.

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Central Bank Of Cyprus Balance Sheet Reflects Strong Eurosystem Position

by THEFUTURE.TEAM

February 17, 2026

Overview Of Financial Stability

The Central Bank of Cyprus (CBC) has released its latest balance sheet, reaffirming its steadfast role within the Eurosystem. The balance sheet, featuring total assets and liabilities of €29.545 billion, underscores the institution’s stable financial posture at the close of January 2026.

Asset Allocation And Strategic Holdings

Governor Christodoulos Patsalides issued the balance sheet, which details the CBC’s asset composition under the Eurosystem framework. Notably, the bank’s gold and gold receivables amounted to €1.635 billion, providing a significant hedge and stability to its balance sheet. Additional asset categories include claims on non-euro area residents denominated in foreign currency at €1.099 billion, while claims on euro area residents in both foreign and domestic currency add further depth to its portfolio.

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The most substantial asset category, intra-Eurosystem claims, reached €19.438 billion, an indication of the CBC’s deep integration with its European counterparts. Furthermore, euro-denominated securities held by euro area residents contributed €6.587 billion. Despite a marked emphasis on these areas, lending to euro area credit institutions in monetary policy operations recorded no activity during the period.

Liability Structure And Monetary Policy Implications

On the liabilities side, banknotes in circulation contributed €3.218 billion. Liabilities to euro area credit institutions associated with monetary policy operations were notably the largest single category, totaling €17.636 billion. Supplementary liabilities included those to other euro area residents, which aggregated to €4.989 billion, with government liabilities playing a predominant role at €4.754 billion.

Other liability items, such as claims related to special drawing rights allocated by the International Monetary Fund at €494.193 million, and provisions of €596.571 million, further articulate the CBC’s exposure. Revaluation accounts stood at €1.643 billion, and overall capital and reserves were confirmed at €333.822 million, completing the picture of a well-capitalized institution.

Conclusive Insights And Strategic Alignment

The detailed breakdown illustrates the CBC’s sizeable intra-Eurosystem exposures, reinforcing its central role within Europe’s monetary landscape. With an asset-liability balance maintained at €29.545 billion, the CBC’s financial position remains robust, indicating a commitment to structural stability and strategic risk management.

This fiscal disclosure not only provides transparency into the CBC’s operations but also serves as a benchmark for comparative analysis among other central banks within the Eurosystem, highlighting the intricate balance between asset liquidity, regulatory oversight, and monetary policy imperatives.

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