Tuesday April 28, 2015 Search
Weather | Athens
14o C
09o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Cypriot banks saddled with massive bad loans

Banks in recession-hit Cyprus, reeling from a financial crisis, are struggling with nonperforming loans that make up nearly half their lending and are hampering efforts to finance a cash-starved economy.

The central bank says banks liquidity is sufficient to absorb NPLs up to a certain point, but fast action is needed as the figure is rising.

So the government, lenders and borrowers are seeking ways to reverse the trend without further damaging an economy forecast to contract by 8.7 percent in 2013 and another 3.9 percent this year.

The total of NPLs defined as loans more than three months in arrears or rescheduled several times stood at 23 billion euros at the end of September, according to the latest central bank figures.

That is well in excess of GDP that stands at only 17 billion euros, and represents 42.3 percent of total lending.

Fiona Mullen, a director at research consultancy Sapienta Economics Ltd, said they could soon reach 50 percent, before stabilizing later this year.

Central Bank Governor Panicos Demetriades (photo) has bluntly declared that management of NPLs and restructuring of loans in general present the biggest challenge facing the banking sector in Cyprus.

A big chunk of NPLs is owed by powerful Cypriot business groups not only developers but also commercial conglomerates who have been able to use creative accounting to avoid meeting their obligations.

A source at the central bank has said 6 billion euros, or 26 percent of NPLs, is owed by only 30 borrowers.

There is also the fact that, even if banks want to act, out-of-date legislation makes foreclosure a difficult and lengthy proposition.

[AFP]

ekathimerini.com , Tuesday February 4, 2014 (20:29)  
Nicosia raises 1 bln euros in second post-bailout issue
Greek bonds rise as country resumes compromise efforts
ATHEX: Fifth day of gains for local stocks
Discreet Tsakalotos tapped to salvage troubled Greek loan talks
Athens police question father of missing girl
Police in Athens on Tuesday were questioning a young man believed to be the biological father of a 4-year-old Bulgarian girl who went missing in the area of Omonia, central Athens, on April ...
Athens judge jails arsonist for seven years
An Athens court on Tuesday handed a seven-year sentence to a 40-year-old man after finding him guilty of starting two fires in forestland near Vyronas, eastern Athens, for the fun of it, las...
Inside News
BASKETBALL
Rethymno defeats in-form AEK on Crete
AGO Rethymnou put an end to a positive string of results for in-form AEK, while PAOK survived a strong challenge by Kolossos Rhodes in Thessaloniki in yet another exciting weekend of basketb...
SOCCER
Panathinaikos beats Xanthi to rise to second
Panathinaikos jumped back up to the second spot of the Super League after its home win over Xanthi on Saturday, as PAOK slumped to third due to its draw at home with PAS Giannina on Sunday. ...
Inside Sports
COMMENTARY
The Good, the Bad and the Ugly
It is so exhausting and unpleasant for average Greek citizens to keep hearing for weeks now that the countrys cash reserves will run out in two months, one month, next week, and especially ...
EDITORIAL
Better late than never
Three precious months were lost in the governments negotiations with the countrys international partners and creditors, as some of its officials wasted time on their own self-promotion, ha...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
RECENT NEWS
1. Nicosia raises 1 bln euros in second post-bailout issue
2. Greek bonds rise as country resumes compromise efforts
3. Athens police question father of missing girl
4. Athens judge jails arsonist for seven years
5. Top prosecutor says Ilia fire sentences should be upheld
6. Relic of St Barbara to travel from Italy to Greece
more news
Today
This Week
1. The Good, the Bad and the Ugly
2. Creditors to demand extra measures of 3 bln euros
3. Plan on the cards for flat VAT rate of 18 pct
4. Greek PM says people may have to rule on creditor deal [Update]
5. Greek PM says initial deal in bailout talks 'very close'
6. No trolley buses from 11 a.m. to 4 p.m.
Today
This Week
1. Greek government's popularity takes a hit as talks drag on
2. Denialism
3. Europe's collision course with Greece
4. It's up to the Greek government to ensure deal with lenders, says ECB's Coeure
5. Leaving the past in the past
6. Greeces day of reckoning inches closer as debt payments loom
Find us ...
... on
Twitter
... on Facebook
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright 2015, H KAΘHMEPINH All Rights Reserved.