By the close of 2024, Credit Acquisition Companies, commonly referred to as vulture funds, held a total loan value of €20.3 billion in Cyprus, as reported by the local press.

This figure marked a slight decrease from the €21 billion recorded at the conclusion of the first half of 2024, according to statistics provided by the Central Bank of Cyprus.

Out of the total loans, approximately €10.3 billion were allocated to individuals, while around €10 billion was lent to businesses as of December 2025.

A substantial portion of these loans, nearly €19.1 billion or 94%, were categorized as non-performing. This represented a minor decline from the €19.6 billion noted in June 2024.

Vulture funds also held ownership of 8,118 properties by the end of 2024, collectively valued at around €1 billion. This was an increase compared to 7,610 properties valued at €1.1 billion observed at mid-year 2024.

Understanding Non-Performing Loans

A non-performing loan (NPL) is one where the borrower has failed to make payments for an extended period, typically 90 days or more. This indicates that the borrower has missed several deadlines and is unlikely to repay the entire amount without special measures.

For financial institutions, loans are classified as non-performing when they are at significant risk of default, meaning there’s a high probability that the borrower might never repay the full loan. Such loans can adversely affect banks by reducing their profitability and increasing their risk exposure.

To handle NPLs, banks often sell them to Credit Acquisition Companies. These firms attempt to recover part of the funds by restructuring the loan, negotiating with the borrowers, or liquidating assets such as properties.

Vulture Funds Defined

Credit Acquisition Companies, often dubbed ‘vulture funds,’ earn this nickname through their comparison to vultures. These birds survive by scavenging, feeding off the carcasses of dead animals, and the metaphor reflects the companies’ strategies to extract whatever value they can from financially distressed assets.