in-cyprus FinMin welcomes banks' decision not to compound interest

FinMin welcomes banks’ decision not to compound interest

Finance Minister Constantinos Petrides said on Friday that the decision of Cyprus’ banks not to compound interest during the nine-month loan deferment period announced by the government, was “expected and necessary”.

“Banks will not charge compound interest at a time when the suspension of installments and interest has been legally imposed. What was expected and necessary was done,” Petrides said in a tweet after an announcement issued by the Association of Cyprus Bank’s (ACB).

He said the next step for the banks would be to allocate liquidity for businesses through cheap lending based on the loan scheme the government is proposing.

According to the ACB press release,  in addition to the suspension of capital and interest instalments, compound interest will not be applied to loans that fall under the provisions of the  Finance Minister’s decree for which there will be a suspension at the request of the borrower.

ACB points out that the Banks went ahead with the decision on the basis of legal and regulatory requirements, regulatory parameters and accounting standards.

It also notes that banks continue to look at every possible option and study the available tools in order to support businesses, self-employed and households with the main goal of reducing the economic impact of the Covid-19 pandemic on the Cypriot economy.

The government has unveiled two schemes to help workers keep their jobs and businesses to avoid bankruptcy amid the coronavirus pandemic. The first provides for a suspension of loan and interest payments for a period of nine months, or end of December 2020. The second provides government guarantees of up to two billion euros to banks to offer low-interest loans and to subsidize part of the interest rate.

The loan deferment covers businesses, natural persons and self-employed who were consistent with their obligations to both the banks and other credit institutions. For the implementation of the measure, a written request should be made to the financial institution.

(Cyprus News Agency)

Top Stories

Meghan loses latest court battle with UK tabloid newspaper

Meghan, Britain's Duchess of Sussex, has lost the latest skirmish in her privacy lawsuit against a tabloid newspaper, after London's High Court ruled on...

Armenia’s defence ministry says warplane shot down by Turkish F-16 fighter jet

A Turkish F-16 fighter jet shot down an Armenian SU-25 warplane over Armenian territory on Tuesday, killing the pilot, an Armenian defence ministry spokeswoman...

Greek, Italian and French officials to hold talks with Petrides during visits

Greek Minister of National Defence Nikos Panagiotopoulos, accompanied by the Chief of the Hellenic National Defence General Staff Konstantinos Floros, Chief of Defence Staff...

Employers – clients determine working time of 74% of workforce in Cyprus

In 2019, the employer, organisation or clients mainly decided on the working time of almost 118 million of the 194 million employed people aged...

Syllouris expresses solidarity and support to the Armenian people

Cyprus House President Demetris Syllouris expressed feelings of sincere solidarity and fraternal support to the Armenian people during a telephone conversation he had on...

Taste

Sheftalies

Sheftalies, a very tasty dish from the charcoal grill, are minced meat shaped into small sausages and wrapped in “panna” (suet). Panna is a...

Spicy grilled soutzoukakia

Place all ingredients for soutzoukakia in a bowl and mix well, preferably using a food processor, until well combined. Using the mixture, form cigar-shaped...

Souvlakia

Pork souvlaki: Put the meat and all the other ingredients in a bowl (not metal) and mix well. Cover the bowl and keep in...

Pastelli (Carob Toffee)

The nutritional sweet of Pastelli is made with the syrup of carob pods, produced by boiling their pulp until it forms a thick, sticky...