**Title: Over 62,000 Cypriot Borrowers Managed by Debt Collection Companies**
As of June 30, 2026, Cyprus' credit servicers and credit acquiring companies are managing a substantial loan portfolio valued at €19.28 billion, according to a recent report from the Central Bank of Cyprus (CBC). This sector, which plays a critical role in the management of distressed loans, is facing significant challenges, with a non-performing loan (NPL) ratio remaining alarmingly high at 94.6%.
The report indicates that out of the total loan portfolio, €9.345 billion is attributed to household loans, while non-financial corporations account for €9.205 billion. Additionally, loans related to other financial corporations amount to €726 million. The data reflects the ongoing struggles within the Cypriot economy, particularly in the realm of consumer debt and corporate financing.
At the end of June, the total number of borrowers managed by these credit servicers and companies reached 62,771. Households represent the bulk of this figure, with 53,494 borrowers, while non-financial corporations constitute 9,214 borrowers. A small number, just 63, are classified as other financial corporations.
The high NPL ratio indicates a persistent issue with distressed lending in the portfolios managed by these entities. This situation has remained largely unchanged since March 2026, underscoring the ongoing difficulties faced by borrowers in meeting their financial obligations. The net book value of the loan portfolios was reported at €2.671 billion, a figure that reflects adjustments in valuation and accounting practices.
In addition to the challenges posed by high levels of non-performing loans, the report also highlights a decline in property holdings by credit acquiring companies (CACs). At the end of June, CACs held 7,714 properties, down from 8,014 in March, marking a reduction of 300 properties over the three-month period. The open market value of these properties also saw a decline, falling from €968 million in March to €918 million in June, representing a decrease of approximately 5.2%.
These figures shed light on the current state of the credit servicing and acquisition sector in Cyprus, revealing the scale of loan portfolios and the impact of economic conditions on property values. As the CBC continues to publish aggregate data on the industry, stakeholders are closely monitoring the evolving landscape of credit management in Cyprus.
The ongoing issues with non-performing loans and declining property values raise concerns about the long-term stability of the financial sector in Cyprus. With over 62,000 borrowers relying on the services of credit management companies, the need for effective solutions to address these challenges is increasingly urgent.