Thursday October 23, 2014 Search
Weather | Athens
24o C
14o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Troika begins fifth review of bailed-out Cyprus economy

A delegation from the troika of international lenders Tuesday began its fifth assessment of Cyprus's economy and troubled banking system, focusing on the threat of bad loans.

Some 45 percent of all loans at Cypriot banks are classified as non-performing -- 27.1 billion euros from total lending of 60 billion euros, according to Cyprus Central Bank figures.

Non-performing loans (NPLs) represent 43 percent of bank loans and 51.7 percent of loans in cooperative banking.

The International Monetary Fund said earlier this month that the level of NPLs in Cyprus is the highest in Europe at almost 140 percent of GDP, curbing credit to the economy and stunting growth.

Cyprus has successfully completed four similar reviews from the troika -- the European Commission, European Central Bank and International Monetary Fund.

The current week-long examination will focus on bank reform, a proposed national health scheme and how to deal with NPLs and home repossessions.

In previous reviews, Cyprus has been praised for sticking to a harsh bailout adjustment program it agreed last year with the troika.

Nicosia has said it will adhere to the bailout agenda no matter how unpopular it is.

Cypriots have had to endure tough austerity measures which have seen wages slashed and consumer and property taxes increased.

In return for 10 billion euros in aid from international lenders, the holiday island in March 2013 agreed to wind down its second largest bank, Laiki, and impose losses on depositors in under-capitalized largest lender, the Bank of Cyprus.

Its depositors were hit with a 47.5 percent bail-in as part of the bailout package.

Recession-hit Cyprus needs to pass this assessment to receive its next tranche of bailout cash. It has already received half of the ten billion euros agreed last year.

Nicosia concedes that the greatest challenge is clawing back bad debt.

International lenders do not expect Cyprus -- suffering record 17 percent unemployment and a credit squeeze -- to exit recession until 2015.

The European Commission estimates that the economy will contract 4.2 percent in 2014 -- lower than the initial 4.8 percent forecast -- but growth will be pegged back to 0.4 percent in 2015 rather than the previously expected 0.9 percent. [AFP]

ekathimerini.com , Tuesday Jul 15, 2014 (14:02)  
Athens weighs its LNG and CNG options
Greece ranks among global leaders in tourism growth
Global oil price drop sends local fuel prices back to 2010 levels
Buy big house, become a citizen
Cyprus seeks EU response over Turkey´s EEZ violation
Cyprus is to raise the issue of Turkey’s violation of its exclusive economic zone (EEZ) at Thursday’s European Council meeting after Turkish Prime Minister Ahmet Davutoglu raised the specter...
Thirteen indicted for inmate torture
Thirteen correctional officers and their former warden will stand trial in Serres, northern Greece, over the death of Albanian inmate Ilie Kareli on March 27 at Nigrita Prison. Kareli was tr...
Inside News
SOCCER
Roberto´s heroics make Kasami´s goal count
Pajtim Kasami’s goal and Roberto’s heroics in goal saw Olympiakos claim one of the biggest wins in its history on Wednesday downing Italian champion Juventus 1-0 to boost its chances of reac...
SOCCER
Third-division Iroditos punished heavily after fan death
Greek third division team Irodotos has been docked 15 points and ordered to play 10 matches behind closed doors following the death of an Ethnikos Piraeus supporter, the Hellenic Football Fe...
Inside Sports
COMMENTARY
Careful what you wish for
Everyone is in a rush to become prime minister in this country, as if they have not learned a single thing from its political history. While still in opposition, PASOK’s George Papandreou ma...
EDITORIAL
Taking care of our key industry
It’s time to face facts: Tourism is the country’s heavy industry. The sector’s considerable contribution has served as a stabilizing factor for the local economy, essentially placing the cou...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Roberto´s heroics make Kasami´s goal count
2. Athens weighs its LNG and CNG options
3. Greece ranks among global leaders in tourism growth
4. Global oil price drop sends local fuel prices back to 2010 levels
5. Buy big house, become a citizen
6. Cyprus seeks EU response over Turkey´s EEZ violation
more news
Today
This Week
1. At least 11 banks to fail European stress tests, three in Greece, report says
2. Cyprus to block Turkey's EU talks after EEZ violation
3. EU’s Juncker wins Commission-team approval with investment vow
4. Juncker’s EU commission team set for parliamentary green light
5. Taprantzis resigns from privatization agency TAIPED
6. Fallen tree, smashup cause traffic jams in Athens
Today
This Week
1. Istanbul skyscraper casts shadow over Greece's banking ambitions
2. Coalition shooting itself in the foot
3. Greece’s closed society is central to its current malaise
4. Greece must stick to reforms, says Schaeuble
5. The past, present and future of the Greek debt crisis
6. Samaras’s crumbling Greek exit lacks backing from economists
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.