Cyprus ranked first in the EU in reducing Stage 2 loans by the end of 2024, according to the European Banking Authority (EBA).
EBA recently released its Spring 2025 edition of its risk assessment report (RAR), which also analyses the funding plans of banks within the European Union/European Economic Area (EU/EEA). This report is supplemented by the Spring Risk Assessment Questionnaire (RAQ).
In Cyprus, Stage 2 loans were reduced by 34.5% at the end of December 2024, compared to December 2023 and accounted for 5.8% of the total.
A significant decrease, by 32.2%, was also recorded in Stage 2 loans in Belgium, which stood at 7.4%, but also in Sweden by 22.1%, reaching 4.8%. In Italy they decreased by 20.2%, to 9.2% and in Greece by 12.5%, to 7.4%.
On the contrary, a significant increase was recorded in the same period in Denmark, among others, by 44%, to 15.9%, and in the Netherlands by 28.2%, to 10.1% and in Slovenia by 25.8%, to 9.3%. The EU average is 4.4%.
"Stage 2" is the stage where the borrower's financial data is collected and examined by the credit institution.
The edition was released on 27 June.
(Source: CNA)
