CYPRUS

‘Tragic’ foreclosures decision

‘Tragic’ foreclosures decision

The chief executive officer of the Bank of Cyprus, Panicos Nicolaou, has described Cyprus’ decision to extend the suspension of foreclosures as “tragic.”

“We are exposing the country without actually helping borrowers,” Nicolaou said last week when he was asked to comment on the recent decision by the House of Representatives to extend the measure of foreclosure suspension during a presentation of the financial results for the first nine months of 2022, which showed a loss of 9 million euros.

“We, as a bank, are willing and have an obligation to assist vulnerable borrowers. At the moment, we have legislation that allows, for example, companies with a turnover of up to €750,000 per year and nonperforming loans, to file for bankruptcy,” he stated.

The Bank of Cyprus CEO also criticized lenders for going through the process of explaining such decisions to the investment community, which, he said, harmed the island nation’s credibility. He added that the country needs a stable legal framework and that companies with non-performing loans do not even present their balance sheet data.

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