At the end of 2024, the total value of loans held by Credit Acquisition Companies (better known as vulture funds) in Cyprus was €20.3 billion according to a report in the local media.
This was a slight drop from €21 billion recorded at the end of the first half of 2024, according to data released by the Central Bank of Cyprus.
Of these loans, around €10.3 billion were given to individuals, while approximately €10 billion were loans to businesses, as of December 2025.
Most of these loans, about €19.1 billion or 94%, were classified as non-performing (see below). This was a small decrease from €19.6 billion in June 2024.
By the end of 2024, vulture funds also owned a total of 8,118 properties, worth around €1 billion. This was an increase from 7,610 properties, valued at €1.1 billion, at the end of the first half of 2024.
What is a non-performing loan?
A non-performing loan (NPL) is a loan that a borrower has stopped repaying for a certain period, usually 90 days or more. This means the borrower has missed multiple payments and is unlikely to repay the full amount without special arrangements.
Banks and financial institutions classify loans as non-performing when they are at high risk of default (meaning the borrower might never pay back the full loan). These loans can cause financial problems for banks because they reduce profits and increase risks.
To manage NPLs, banks often sell them to Credit Acquisition Companies. These companies try to recover some of the money by restructuring the loan, negotiating with borrowers, or selling assets like properties.
Vulture funds
Credit Acquisition Companies are better known as ‘vulture funds’. “Vulture” is a metaphor that compares vulture funds to the behaviour of vultures, birds that scavenge for food by eating dead animals to extract whatever they can from their defenceless victims.
