ECONOMY

Eurogroup tells Cyprus new legislation must change

Eurozone finance ministers on Friday urged Cyprus to tighten up new legislation on private sector debt restructuring, a key to meeting its bailout conditions, saying it is waiting for confirmation before the next tranche of aid can be issued.

The European Union has been unhappy at legislation passed last week that simplifies foreclosure procedures in a bid to slow rising levels of nonperforming loans at commercial banks, saying they do not meet the requirements of the bailout accord.

“We call on all domestic stakeholders to [take] their responsibility and ensure that adequate foreclosure and insolvency legislation is in place as soon as possible, in line with the memorandum of understanding,” Jeroen Dijsselbloem, chairman of the Eurogroup committee of finance ministers, told a news conference in Milan.

[Reuters]