Insider Business Bank of Cyprus, Hellenic to sell loans worth €4bn, Central Bank governor...

Bank of Cyprus, Hellenic to sell loans worth €4bn, Central Bank governor says

Bank of Cyprus and Hellenic Bank will sell loans, worth €4bn in total, according to the Governor of the Central Bank of Cyprus (CBC), Constantinos Herodotou.

Herodotou briefed on Monday the House Committee on Financial and Budgetary Affairs, noting that non-performing loans (NPLs) have not changed much during the last few months. He also pointed to two major milestones, as he called the efforts by the two largest banks to sell loans from their portfolio. The move is expected by the end of February for the Bank of Cyprus, while Herodotou said that he was not aware about the date for Hellenic Bank.

He went on to say that both banks are expected to sell loans worth €4bn in total, allowing them to dispose more than 10% of their problematic loans and concentrate on operational matters.

Moreover, the final position of the European Central Bank (ECB) with regard to a complaint handling mechanism on foreclosures, prepared by CBC, is expected during the third week of February.

Herodotou told the House Committee on Financial and Budgetary Affairs that deliberations with ECB started on December 6, with the CBC sending a detailed description of the mechanism. After receiving the relevant draft bill, the ECB sent an unofficial document with its initial thoughts, he added.

The CBC governor also remarked that deliberations are confidential, but noted that the ECB agrees in general with the mechanism’s modus operandi. A consultation on two issues is pending between the CBC and the Finance Ministry, which is scheduled to take place next week, he added.

After the consultation is complete, the draft bill we be sent back to the ECB at around February 6-7, and a reply is expected by February 20-21.

Herodotou said that the plan aims to help banks avoid being adversely hit, while people will be able to seek redress.

The CBC governor said that he intends to invite House Committee members at the CBC as soon as the ECB final position becomes clear.

(Cyprus News Agency)

Top Stories

Triple digit covid cases for a 3rd day running but going down-101 today One in 18 positive

  One hundred and oney new Covid-19 cases were announced today, out of 2 thousand 781 tests, taking the total number of confirmed patients to...

Sudan says it will discuss trade, migration deals with Israel

  Sudan and Israel will discuss agreements to cooperate on trade and migration issues in the coming weeks, the Sudanese foreign ministry said, signaling steps...

‘Macron a nutcase who’s lost his way’, Erdogan says in new insulting tirade

  Turkish President Tayyip Erdogan said Emmanuel Macron had “lost his way”, in his second sharp criticism of the French leader in two days over...

Armenian community in Cyprus holds Karabakh protest

  The Armenian community in Cyprus held an all-day protest today, condemning the Azeri attack on Nagorno Karabakh. The march went through various areas of Nicosia,...

Spain decrees new state of emergency in COVID-19 fight

  Spanish Prime Minister Pedro Sanchez announced a new state of emergency in an effort to curb soaring coronavirus infections, imposing local nighttime curfews and...

Taste

Squash soup

Ingredients: 1 kg pumpkin, cut into small cubes, approximately 5 cups 2 medium (400g) sweet potatoes, cut into cubes, approximately 2 ½ cups 1 chopped leek, only...

Mezedes

No visit to Cyprus is complete without enjoying the traditional meal of many small dishes known as ‘meze’. This large feast, which has been a...

Prawns with fried cheese, barley shaped pasta

Put the barley shaped pasta into a small pan with salted water, bring to a boil and when tender, drain. Peal the prawns leaving...

Salmon and shrimp sheftalies

Mix all ingredients for tabbouli in a bowl and keep to one side so flavours can combine. Prepare the sheftalies: wash and soak the casing...