Banks need to speed up rate of re­struc­tur­ing NPLs

Financial Mirror (Cyprus) - - FRONT PAGE -

Pres­i­dent Ni­cos Anas­tasi­ades will ask the Bank of Cyprus, the Hel­lenic Bank and the Co­op­er­a­tive Cen­tral Bank to speed up the pace of re­struc­tur­ing their non­per­form­ing loans (NPLs), which have been de­scribed as the bank­ing sec­tor’s great­est chal­lenge.

In state­ments af­ter a meet­ing with Cen­tral Bank Gov­er­nor Chrys­talla Ge­orghadji, Gov­ern­ment Spokesman Ni­cos Christodoulides said it was largely “a prepara­tory meet­ing” ahead of the meet­ing with the three credit in­sti­tu­tions on Thurs­day.

Anas­tasi­ades and Ge­orghadji ex­changed points of view on NPLs, he said, adding that ac­cord­ing to the brief­ing the Pres­i­dent had by the Cen­tral Bank Gov­er­nor, the rate of re­struc­tured bad loans is in­creas­ing.

This is some­thing Christodoulides said.

At the same time he said that Pres­i­dent Anas­tasi­ades and the Cen­tral Bank Gov­er­nor also dis­cussed a study con­ducted by a con­sul­tancy on be­half of the Cen­tral Bank re­gard­ing the struc­ture and gov­er­nance of the Cen­tral Bank and added that they agreed to co­op­er­ate on the mat­ter and in par­tic­u­lar as re­gards the need to pro­mote spe­cific leg­isla­tive amend­ments.

Re­ply­ing to a ques­tion as to which banks will be called on to take part at the meet­ing on Thurs­day he said it has been de­cided to in­vite the heads of Bank of Cyprus, Hel­lenic Bank and the Co­op­er­a­tive.

Ge­orghagji, he said, will be abroad on Thurs­day but the Cen­tral Bank will be rep­re­sented at the meet­ing.

Asked whether a probe on the pos­si­bil­ity of a con­flict of in­ter­est of Ge­orghadji with re­gard to her post was dis­cussed at the meet­ing, he said the mat­ter was not dis­cussed, adding at the same time that when there are devel­op­ments on the mat­ter a rel­e­vant state­ment will be made on the part of the pres­i­dency.

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Pres­i­dent

wel­comes,

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