New data released by the Central Bank of Cyprus (CBC) reveals the massive scale of debt currently sitting outside the traditional banking system. As of December 31, 2025, Credit Acquisition Companies (CACs) held a total of €19.35 billion in loans, with a staggering 94% classified as non performing loans (NPLs).
This semi-annual report is part of a transparency initiative by the CBC to provide a clearer picture of the “bad debt” sector, which continues to play a critical role in the island’s broader financial stability.
A Closer Look at the Debt Profile
The vast majority of the €19.35 billion portfolio consists of loans that are no longer being serviced. While performing loans total only €1.13 billion, the mountain of non-performing debt has reached €18.22 billion.
The CBC data breaks down the borrowers into two primary groups:
| Borrower Category | Total Debt | Non-Performing (NPLs) | NPL Percentage |
| Individuals | €9.93 Billion | €9.22 Billion | 93% |
| Legal Entities | €9.43 Billion | €9.00 Billion | 95% |
In total, 61,613 borrowers are currently managed by these credit companies, highlighting the widespread reach of these distressed portfolios across both households and businesses.
The Real Estate Stockpile
In addition to the loans themselves, credit acquisition companies are holding a significant amount of physical real estate acquired through debt settlement procedures and repossessions.
As of the end of 2025, these companies held 8,063 properties on their books. The combined market value of this real estate inventory is estimated at €952 million. This stock remains a key focus for the market, as the gradual release of these properties influences overall real estate supply and pricing in Cyprus.
Enhancing Market Transparency
The Central Bank emphasized that publishing this aggregated data is essential for a healthy economy. By detailing the structure of these loans, categorized by borrower type and servicing status, the CBC aims to provide investors, policymakers, and the public with a realistic view of the challenges remaining in the management of problem loans.
This data covers the entire sector of Credit Facility Managers and CACs, offering a comprehensive look at how these entities are handling the tail end of the financial crisis’s legacy debt.
Source: Stockwatch.com.cy