Insider Economy Towers and passports help towards NPLs reduction

Towers and passports help towards NPLs reduction

Town planning and tax incentives provided to developers along with the purchase of luxury residences and tower apartments by foreigners so as to get the Cypriot passport seem to help out the island’s business world.

Central Bank data shows that the granting of citizenship to investors – mainly Russians and Chinese – for the purchase of luxury properties mainly in high-rises has led to the reduction of non-performing loans. However, part of the reduction of NPLs is also due to the transfer of red loans from the collapsed Cyprus Co-op Bank to KEDIPES.

By the end of 2018, NPLs in the construction sector stood at €1.30 billion from €5.12 billion in 2014, marking a decline of €3.82 billion within four years. However, many of the sector’s red loans have been written off against property exchanged between banks and debtors. In 2015, red loans in the construction sector stood at €4.93 billion, €3.81 billion in 2016 and €3.15 billion in 2017.

A remarkable improvement is recorded in the hotel and restaurant industry. The positive path of tourism has contributed to a drastic reduction of debts by hoteliers, especially of non-performing loans. Because of the positive forecast that tourism will continue to rise in coming years, hoteliers have taken the investment risk of expansion or of construction of new units. In the sector of hotels and restaurants, NPLs dropped to €274.55 million by end of 2018 from €1.33 billion in 2014, €1.30 billion in 2015, €1 billion in 2016 and €337 million in 2017.

In the wholesale and retail trade sector which marks big ups and downs with constant restructuring and sale of assets by companies, NPLs loans stood at €1.42 billion by end of 2018. In 2017, NPLs stood at €1.88 billion,  in 2016 at €2.13, in 2015 at €2.27 and €2.34 billion in 2014.

 

Read more:

https://in-cyprus.com/european-institutions-repeat-their-warning-to-cyprus-on-npls/

 

Top Stories

Arson investigation launched after massive Paphos fire put out-‘Just sick’, says forestry head

  A massive blaze on a 20 kilometre front raging for most of the day yesterday and up to early this morning on the boundaries...

Injured swimmer rescued at Maroni

  Emergency services members rescued a 57 year old injured swimmer yesterday morning off the Paradise coast at Maroni, in the Limassol district. They were called...

43 meter deep crater caused by Beirut explosion

  The massive blast at Beirut port on Tuesday created a 43 meter deep crater. A Lebanese security source said that French bomb experts offered the...

Nicosia cafeteria fined 8 thousand for Covid-19 violations

  A cafeteria in the capital was fined 8 thousand euro for serving a much higher number of people than the one stipulated in the...

Helios crash memorials, almost 15 years to the day

  Memorials for 16 Paralimni residents, killed in the Helios Airways crash on August 14th 2005, were held today in the town's main church of...

Taste

Octopus ‘Kathisto’ (or Octopus braised in Wine)

Ingredients: 1/2 cup Greek extra virgin olive oil 2 medium onions, chopped fine 1 large octopus, about 2kg (cleaned and kept whole) 3/4 cup dry red wine 1/3 cup...

Homemade lemonade

Ingredients: 1 cup lemon juice 1 cup sugar Method: Thoroughly wash the lemons with soap and warm water. Roll each lemon with the palm of your hand, pressing...

‘Striftaria’ mini cheese pies

Ingredients 1 ½ cup milk 2 tbsps. flour 4 tsps. of butter 3 eggs, slightly beaten + 1 extra with 1 tbs. of milk for spreading 1 pack of...

Mini potato canapes baked on salt

Ingredients Serves: 12 1kg small Cypriot potatoes rock salt, as needed 250g salted butter 300ml full fat cremé frâiche 1 pot cod or salmon roe Method Prep:20min › Cook:35min › Ready in:55min Take...