Cyprus: Highest NPLs In Real Estate Sector In Europe
According to the European Banking Authority (EBA), Cyprus’ ratio of non-performing loans in the construction and real estate industry continue to be amongst the highest in the European Union (EU) and the European Economic Area (EEA).
Nearly a decade after the 2008 real estate bubble burst, the non-performing loans ratio of construction firms in March was down to 75% from 76% in December, where both instances were the highest in Europe in the EBA’s quarterly Risk Dashboard report on their website.
Both the real estate and construction industry in Cyprus are benefiting from the government scheme which allows investors, who are also in real estate to acquire a Cypriot passport or a permanent residence permit. According to the EBA, depending on the size of these particular investments, saw the size of their corresponding non-performing loans drop at the end of March to EUR €3.2bn from €3.4bn in a previous quarter and to EUR €1.4bn from €1.6bn.