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Loan Holdings of Vulture Funds in Cyprus
By the end of 2024, Credit Acquisition Companies, known as vulture funds, held €20.3 billion in loans across Cyprus. This was a slight drop from €21 billion recorded in mid-2024, according to the Central Bank of Cyprus.
Of these loans, €10.3 billion were issued to individuals, while €10 billion were business loans. Notably, 94% of the total loans (€19.1 billion) were non-performing loans (NPLs). This was a small decline from €19.6 billion in June 2024.
Property Ownership by Vulture Funds
By the end of 2024, vulture funds also owned 8,118 properties, worth around €1 billion. This marked an increase from 7,610 properties, valued at €1.1 billion, in the first half of the year.
What Are Non-Performing Loans?
A non-performing loan (NPL) is a loan where the borrower has missed payments for 90 days or more. At this stage, banks classify the loan as high risk because the borrower is unlikely to repay it.
To reduce financial losses, banks often sell NPLs to Credit Acquisition Companies. These companies try to recover funds by restructuring loans, negotiating with borrowers, or selling assets such as properties.
Understanding Vulture Funds
The term “vulture funds” compares these companies to vultures scavenging for resources. They buy distressed loans at reduced prices and attempt to recover as much value as possible. Often, they do this through legal action, loan restructuring, or asset liquidation.
As of 2024, vulture funds own billions in loans and thousands of properties, significantly shaping the Cypriot financial market.
Discover more property news and home advice by reading our other blogs on Properush. Stay informed about the latest rental price trends for apartments and houses in Cyprus to make the best property decisions.
Source: Cyprus Property News
