The total value of loans managed outside Cyprus' traditional banking system grew by €256 million in the first quarter of 2026, reaching €19.61 billion as of March 31. This increase, reported by the Central Bank of Cyprus (CBC), was mainly driven by higher balances in household and business loans. Household loans rose by €131 million to €9.67 billion, while loans to non-financial corporations increased by €118 million, totaling €9.24 billion.

Despite the growth, non-performing loans saw an uptick for both households and non-financial corporations, with performing loans declining in both categories. Loans related to other financial corporations showed improvement, with performing loans rising to €15 million and non-performing loans decreasing slightly. The net carrying amount of the managed loan portfolio stood at €2.84 billion, reflecting adjustments for expected cash flows and impairment losses, compared to the contractual balance of €19.61 billion.