Re­struc­tur­ing NPLs at Co­op­er­a­tives “on track”

Financial Mirror (Cyprus) - - FRONT PAGE -

The process of re­struc­tur­ing non-per­form­ing loans (NPLs) in the Co­op­er­a­tive Credit In­sti­tu­tions is fully on track, ac­cord­ing to se­nior bank­ing sources.

The per­cent­age of non-per­form­ing loans in the Co­op­er­a­tives reached 52.62%, or about EUR 7 bln of the EUR 13.28 bln loan port­fo­lio, based on pro­vi­sional data for May is­sued by the Cen­tral Bank of Cyprus. In the same month, the pro­por­tion of re­struc­tured loans stood at 3.92%, or just EUR 520 mln. The bank­ing source said that re­struc­tur­ing NPLs be­gan on June 1, which the troika of in­ter­na­tional lenders (IMF, EC, ECB) stressed as a ma­jor el­e­ment of the Cypriot bailout pro­gramme.

The govern­ment pumped in EUR 1.5 bln to res­cue the Co­op­er­a­tives sec­tor and now con­trols a 99.5% stake, with the aim to re­struc­ture it and re­turn it to nor­malcy, while also help­ing the con­sumers and the small busi­nesses tra­di­tion­ally re­ly­ing on Coops for fund­ing.

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