Banks need to speed up rate of restructuring NPLs

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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