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Cyprus plans asset management company

Nearly five years after the troika of Cyprus’ international lenders proposed that the country establish an asset management company to help reduce the high level of NPLs, Cyprus will present plans for an AMC in Brussels next week.

Cyprus Asset Management CompanyCYPRUS will present its plans for an asset management company to the European Commission’s Directorate General for Competition as it seeks to boost efforts to reduce the high stock of non-performing loans burdening the island’s banking sector.

Government sources told the Cyprus News Agency that plans for an Asset Management Company as well as a scheme called “Estia” (Home) that relates to bad loans secured with primary residences, were presented to Daniele Nouy, chair of the ECB’s Single Supervisory Board, who visited Cyprus on Wednesday.

The Cypriot plans will be tabled during meetings with DG Competition officials in Brussels next week, the same sources added.

Any plans providing for state aid in measures to support banking institutions must be assessed by the DG Competition under the EU rules on state aid.

Cyprus has the second highest percentage of NPLs (based on the EBA definition) which amounted to 44.1 per cent of total loans in October 2017 with EU supervisor calling for more persistent efforts.

“The efforts made by the Cypriot banks over the past few years to tackle the challenges they face are commendable and measurable progress has indeed been made, but additional and persistent efforts are still required to ensure further progress in the reduction of NPLs,” Nouy said in a statement after concluding her visit to Cyprus.

Readers' comments

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  • Jill says:

    You know what – all these outstanding loans that developers had could have been wiped out during the ‘crash’. Anyone with money in the banks over 100,000 euros lost it. But somehow the developers money was ‘elsewhere’!!! Funny that innit????

  • john says:

    ALPHA BANK – Have blood on their hands!

  • steve r says:

    Additional and persistent efforts are still required to ensure further progress in the reduction of NPLs,”
    What next. Send out hit squads. They have already bled individuals of every last penny to the point that people are committing suicide because they cant cope anymore.

    Shame on you all

  • John says:

    Quite strange there is no mention in addressing NPLs attributed to the mis-selling of CHF loans.

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