BUSINESS

NPL management must be stepped up on Cyprus

TAGS: Cyprus, Banking

Cyprus needs to speed up its tackling of the bad loans held by banks and could see privatization plans sapped by politics next year, a source familiar with the thinking of the international organizations policing the country’s economic reforms said.

The European Central Bank, International Monetary Fund and the European Commission have been monitoring the progress of the Cypriot economy since its financial bailout program ended earlier this year.

“The pace of NPL [nonperforming loans] resolution has to accelerate,” the source said on Wednesday, adding that some banks were working quite successfully at the process.

“Foreclosure rules have to be used more forcefully.”

[Reuters]

Online