• Monetary Metals
    05/02/2016 - 01:28
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Chart Of The Day: One Of Every Two Cyprus Loans Is In Default

Tyler Durden's picture


Far be it for us to comment that anything like "fundamentals" matters anymore, or that, blasphemy, bad news is anything but good news, however what the Central Bank of Cyprus revealed today is a little troubling to say the least: as of the most recent, June, data, the total percentage of non-performing loans in the Cypriot banking system just rose to a mind-blowing 45%, up from 44.3% in May, and nearly double the 23.6% which was reported at March 2013 when the local banking system cratered, leading to the first European forced "bail-in" of (mostly Russian) depositors.

In other words, nearly one of every two loans in Cyprus is now in default or near-default.

One wonders if, when peeling all the rhetoric and obfuscation, Europe's very own NPLs, which several years ago were estimated to be in the trillions of euros, is higher, lower, or just about the same as Cyprus.

Source: Central Bank of Cyprus

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Mon, 08/25/2014 - 09:33 | 5140106 TheSecondLaw
TheSecondLaw's picture

All is quiet on the Western Front...

Mon, 08/25/2014 - 09:36 | 5140120 Headbanger
Headbanger's picture

For now...

Mon, 08/25/2014 - 09:37 | 5140126 Latina Lover
Latina Lover's picture

Coming to a neighborhood near you...

Mon, 08/25/2014 - 09:40 | 5140150 GetZeeGold
GetZeeGold's picture



What do we want?




When do we want them?



Mon, 08/25/2014 - 10:12 | 5140323 RockyRacoon
RockyRacoon's picture

I think we now know what revenge looks like.


Freedom's just another word for nothin' left to lose

Mon, 08/25/2014 - 10:25 | 5140373 DullKnife
DullKnife's picture

Half defaulting?

But they pay good interest.

Thus are good investments.



Mon, 08/25/2014 - 09:34 | 5140107 ilion
ilion's picture

Really bullish.

Mon, 08/25/2014 - 09:58 | 5140255 asteroids
asteroids's picture

The question is, why haven't the banks finally imploded?

Mon, 08/25/2014 - 14:38 | 5141372 NEOSERF
NEOSERF's picture

Because Draghi went to the mountain and returned with two tablets which in a nutshell said "thouest shall see the light of hard working printers which shall delivereth thou from bankruptcy".

Mon, 08/25/2014 - 09:37 | 5140119 ebworthen
ebworthen's picture

I'd bet money that AIG is running commercials over there, and that CALPERS has levered up with some Cyprus Credit Default Swaps sold by Goldman Sachs.

Mon, 08/25/2014 - 09:37 | 5140125 LawsofPhysics
LawsofPhysics's picture

Eventually, people just need to recognize what real value, real capital and real money is and start executing the real criminals.  There simply is no other way to "chase the moneychangers from the temple" as it were...

Mon, 08/25/2014 - 09:38 | 5140131 Quinvarius
Quinvarius's picture

No mark to market, no problem.  Load up on that worthless crap and claim it at face value.  Peak ponzi means anything goes.

Mon, 08/25/2014 - 09:38 | 5140136 Sudden Debt
Sudden Debt's picture

so... you steal their money...

and than...

it surprises you...

that they can't pay their bills...

hmmm.... let's sink that one in...

Mon, 08/25/2014 - 09:40 | 5140142 papaswamp
papaswamp's picture

Totally unrelated... Active shooter reported Ft. Lee Virgina. CASCOM facility.

Mon, 08/25/2014 - 09:41 | 5140143 Dr. Engali
Dr. Engali's picture

CNBC is getting a bit jumpy. They just sent the following phone alert : the S&P topples another record; bechmark near 2,000. I better maintain a good distance from my phone when it does, CNBC's electronic orgasm just might blow my phone up.

Mon, 08/25/2014 - 09:41 | 5140157 vote_libertaria...
vote_libertarian_party's picture

I hope that is the 'bad bank'...

Mon, 08/25/2014 - 09:44 | 5140172 MollyHacker
MollyHacker's picture

This is just a little blowback effect from Russian sanctions ofcourse and it has to be "priced-in"

Mon, 08/25/2014 - 09:49 | 5140202 Seasmoke
Seasmoke's picture

So bail Ins , do not work ????

Mon, 08/25/2014 - 09:57 | 5140251 LawsofPhysics
LawsofPhysics's picture

No, they do not, especially if the stolen monies are not re-invested wisely and the debt is not retired.

Moreover, there simply is no political, economic, or monetary solution to resources scarcity (especially on tiny crowded islands).

same as it ever was...


Mon, 08/25/2014 - 10:11 | 5140318 q99x2
q99x2's picture

They were supposed to change their currency to Bitcoin. They should have.

Mon, 08/25/2014 - 11:33 | 5140678 shitco.in
shitco.in's picture

Danny Brewster was running a scam.  

Mon, 08/25/2014 - 10:19 | 5140330 Dubaibanker
Dubaibanker's picture

Since when did logic matter in the 'capitalist' system system of ours when endless money is being printed at the snap of a finger and is able to bail out every single busted company only in the western economies (from commercial banks to hedge funds to investment banks to car companies to solar companies to insurance comapnies etc). Whereas, in the real world of the developing countries, they still need to be able to borrow so they must do austerity as they cannot print money at free will and nor do they own the ratings agencies. It is good the ratings agencies belong to the same Western economies else the truth would have been out by now (just like they told the truth about Brazil, South Africa and Russia earlier this year since they did not listen to western countries by promptly downgrading them, Russia was downgraded after the start of the Crimean crisis but there was no connection obviously...;) ;) )!

As Bernanke said in the US Congress testimony:

Senator: Are you printing money?

Bernanke: 'Not literally'

Mon, 08/25/2014 - 10:15 | 5140333 Watson
Watson's picture

Merkel won her election, so if 'push comes to shove' German taxpayers will contribute whatever necessary, so NPL's not really relevant.

Surely the remarkable thing is that (by some measure) 55% of loans are still considered performing.
To me, very surprising any borrowers make any payments at all.


Mon, 08/25/2014 - 10:16 | 5140336 the grateful un...
the grateful unemployed's picture

in the US the ratio is 2:1, loans that haven't been made which are non-performing, (private debt equals public good, machiavelli) is each day the economy loses steam, and those loans which were never made begin to weigh on the economy in terms of growth potential which was squandered (in order to build phantom collateral for TBTF banks) the worse the economy gets the more phantom collateral those banks need, as we sit on the edge of recession, which is really depression, Cyprus and its 50% non performing rate actually looks pretty good

Mon, 08/25/2014 - 10:32 | 5140402 giggler321
giggler321's picture

They already took more than their fair share of taxes.  If you were one of the poor folk who got stomped on by ECB and had a loan, morgage whatever; would you be still paying it off after they helped themselves?  This 1-off wealth tax on the poor and subclasses was really workable wasn't it?  Expand that to other European countries?  I doubt it without serious home grown unrest.

Ukrainians are the lucky ones - at least they have AK47's, most of Europe will have rocks, stones and grumpy people.

Mon, 08/25/2014 - 11:29 | 5140664 Perfecthedge
Perfecthedge's picture

Perfectly said!

Bullish on AK47's.

Mon, 08/25/2014 - 12:55 | 5140785 VWAndy
VWAndy's picture

Central planing the pinacle of short term thought. As if swipping everybodies paycheck was not going to leave everybody short. Still It could be fixed. Fifty foot of good rope would do it.

 They so deserve a strike until the cops start doing thier jobs right.

Mon, 08/25/2014 - 12:57 | 5141003 VWAndy
VWAndy's picture

Did they swipe the cops paychecks too?

Mon, 08/25/2014 - 13:04 | 5141036 Quaderratic Probing
Quaderratic Probing's picture

They let them have 100 Euros per day 2000 per month max

You buy food and dont pay on bank loans ( mort car ect )

Any left over after food is not put back in the bank.

Bank drains of income and deposits

Bank fails.....2 years after confiscation.

Only success is delay, oh and Vlads enemy ex oil billionaires were wiped out

Maybe should have kept them.

Mon, 08/25/2014 - 14:43 | 5141390 SmittyinLA
SmittyinLA's picture

Bullish for BoA, Citi, JPM, you have to look at credit potential, fraud potential for future growth 

They have plenty of room to expand, who cares if its all fraud?

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