Friday May 29, 2015 Search
Weather | Athens
14o C
09o 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)  
Hoteliers seek VAT solutions
Chaos in the system for tax declarations
Lenders’ first-quarter data suffer from NPL expansion
Regional airport concession deal ‘to be sealed soon’
PM speaks to Merkel, Hollande as lenders increase pressure
With negotiations between Greece and its creditors at a critical phase, Prime Minister Alexis Tsipras on Thursday sought the assistance of German Chancellor Angela Merkel and French Presiden...
To Potami and PASOK poised to support deal
To Potami leader Stavros Theodorakis said Thursday that his party would back any agreement between the government and the institutions, while PASOK chief Evangelos Venizelos suggested that P...
Inside News
SOCCER
Panathinaikos conquers PAOK through Tavlaridis goal
A Stathis Tavlaridis goal has brought Panathinaikos to practically within one point from clinching a spot in next season’s Champions League qualifiers, as the Greens made it three out of thr...
SOCCER
AEK Athens returns to top league after financial collapse
Greek club AEK Athens has just returned to the country's top soccer league, two years after financial collapse sent it to a lower league. One of the country's largest clubs, AEK sealed its s...
Inside Sports
COMMENTARY
FIFA and fair play
Greeks must be among the less excited observers of the ferocious crackdown on the highest echelons of global soccer’s administrative body, FIFA: from the lowest leagues to our top teams, fro...
COMMENTARY
Greece´s Cuban pathway to a parallel currency
The idea of a parallel currency for Greece is worthy of consideration, with even German Finance Minister Wolfgang Schaeuble broaching the possibility as Greece fails to reach an agreement wi...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Hoteliers seek VAT solutions
2. Chaos in the system for tax declarations
3. Lenders’ first-quarter data suffer from NPL expansion
4. Regional airport concession deal ‘to be sealed soon’
5. PM speaks to Merkel, Hollande as lenders increase pressure
6. To Potami and PASOK poised to support deal
more news
Today
This Week
1. Endless confusion and worry
2. G-7 weighs in on Greece as Tsipras government told to be serious
3. ECB's Nowotny says no to loosening funding for Greece now
4. Lagarde says still much work to do in Greek debt talks
5. Greek bank losses show predicament amid record outflows
6. Following up on a positive step
Today
This Week
1. Hotel contracts with a ‘Greek default clause’
2. Some 300 mln left banks on Tuesday
3. Neither Grexit nor a dual currency will solve Greece’s problems
4. No more 'quick and dirty' fixes for Greece
5. Romantic notions meet reality
6. Tsipras faces down radicals within SYRIZA over terms of deal
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2015, H KAΘHMEPINH All Rights Reserved.