BOCY has reached 80% of re­struc­tures, ELA drops fur­ther

Financial Mirror (Cyprus) - - FRONT PAGE -

Bank of Cyprus of­fi­cials have said that the lender has con­cluded about 80% of is tar­geted re­struc­tur­ing of non­per­form­ing loans and that the aim is to close the year with EUR 1 bln worth of bad loans.

To date, some EUR 3 bln of bad loans have al­ready been re­struc­tured, al­most half of its tar­get, that cor­re­sponds to about 30 big debtors.

Not among them is the Church of Cyprus, which has of­fered to put up land as col­lat­eral and to re­struc­ture some EUR 100 mln of its own NPLs held at the bank, sim­i­lar tio two deals al­ready con­cluded at the Hel­lenic Bank.

Mean­while, press re­ports over the week­end sug­gested that BOCY had reached a deal with ma­jor debtors, namely the three property com­pa­nies Pafilia, Zavos and Tsokkos Ho­tels, with two more re­struc­tur­ing un­der­way.

The names of the three clients that have suc­cess­fully re­struc­tured their obli­ga­tions with BOCY had made head­lines last year when a confidential list of the Bank of Cyprus’ top-30 bor­row­ers with non-per­form­ing loans was leaked to the press, the Cyprus Mail re­ported, adding that ac­cord­ing to the list, which rep­re­sented a snap­shot of out­stand­ing loans in June 2013, the Zavos group had EUR 134 mln in un­ser­viced ex­po­sures, Tsokkos had 172 mln and Pafilia had 90 mln.

Ear­lier this month, Nick Smith, the bank’s head of re­struc­tur­ings and re­cov­er­ies, had said that the lender was at a “tip­ping point” in re­duc­ing bad loans af­ter the pace of re­struc­tur­ings picked up in the sec­ond quar­ter and is con­sid­er­ing re­duc­ing its ex­po­sure in larger loans through syn­di­ca­tion.

“Even though the of­fi­cial non­per­form­ing ex­po­sure lev­els will not change for about a year, those who to­day dis­miss the progress made, will no longer be jus­ti­fied in do­ing so,” Smith said.

BOCY saw it­sNPLs drop to EUR 14.2 bln or 62% of its gross loans in Septem­ber from al­most 15 bln or 63% last De­cem­ber.

Mean­while, the Bank of Cyprus has re­duced in Septem­ber its de­pen­dence on the Emer­gency Liq­uid­ity As­sis­tance (ELA) by EUR 230 mln to 4.17 bln by the end of Novem­ber, ac­cord­ing to fig­ures re­leased by the Cen­tral Bank of Cyprus. This was down from 4.40 bln at the end of Oc­to­ber.

Since the be­gin­ning of the year, the bank re­duced its de­pen­dence on ELA by EUR 3.2 bln, as at the end of De­cem­ber 2014, the fa­cil­ity stood at 7.4 bln.

Newspapers in English

Newspapers from Cyprus

© PressReader. All rights reserved.