Insider Business Government stresses need to solve Cyprus' NPLs problem

Government stresses need to solve Cyprus’ NPLs problem


Government Spokesman Prodromos Prodromou has stressed the need for a solution to the problem of Non-Performing Loans ( NPLs) in Cyprus.

He was replying to questions on Sunday about the Opposition’s criticism over the way the government had handled the sale of the state-owned Cyprus Co-operative Bank (CCB) to Hellenic Bank.

The state was forced to buy the CCB in 2013 by injecting €1.8 billion. “The CCB’s losses were large”, said Prodromou, according to a Presidency of the Republic press release.

However, he added, the two banks are now joined in a formation that is strengthened by a €10 billion injection in deposits which are secured, contrary to rumours in recent weeks that CCB deposits are unsafe.

The state took on around €6 billion worth of non-performing loans, after it deposited €2.5 billion in CCB last month as the bank was facing a possible run on deposits following rumours about its viability.

Prodromou said the state will pass on all the NPLs it owns to a new body to be set up to deal with the non-performing loans owned by all banks.

He also said that the state will make an additional deposit of €1 billion to the CCB in exchange for performing loans worth €500 million and all of the Bank`s immovable property, worth €600 million.

After that, and together with a review of the legislation “we will be able to provide a solution to Non-Performing Loans, similar to the proposal of all political parties,” he added.

Read more

Top Stories

Everything ready for inoculations among enclaved Greek Cypriots and Maronites

All necessary arrangements have been made to start inoculating against COVID-19 the enclaved population and those who repatriated in the Karpas peninsula and the...

Expert says any relaxations of COVID measures to be made gradually and aimfully

Any relaxations of COVID measures in place until the end of January should be made gradually and aimfully and with a specific procedure, member...

Roads toward Troodos open only to 4WD and vehicles with snow chains

Police are warning drivers heading to Troodos to be careful because of snow and fog and ice. The Karvounas-Troodos, Platres-Troodos and Prodromos Troodos roads are...

Health Ministry introduces new procedure for COVID inoculation appointments

Ηealth Ministry on Tuesday announced a new procedure for COVID inoculation appointments. Cyprus began the vaccination program of its population on December 27th with citizens...

Registration of motor vehicles from the UK

Following Brexit, the Road Transport Department, of the Ministry of Transport Communication and Works, announced the Regulations which now apply for the registration of...


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...


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...