Non-performing loans (NPLs), i.e. the loans whose repayment is delayed for more than three months or has been stopped, increased by €25.6m (15.7%) in a year. At the end of June, they were worth a total of €188.9m, according to official data from the Central Bank (CBCG).
Domestic banks’ NPLs accounted for 5.7% of total loans at the end of the Q2. In the first six months of this year alone, NPLs rose by €15.9m.
“As a result of the locking down the economy in the past period, in order to combat the negative effects of the Covid-19 epidemic, certain activities faced a liquidity and solvency crisis, unemployment in the country increased, and NPLs tended to grow”, says the CBCG’s macroeconomic report for the Q2 of this year.
