TUESDAY, 10 DEC 2019



Facebook Linked In Twitter
Invest Cyprus 30/04-30/03/2019

Yiorgos Lakkotrypis: Development of “Aphrodite” Gas Field Continues As Planned

Cyprus President Outlines Eleven Reform Proposals



Central Bank Governor Urges Banks to Find Ways to Handle Bad Loans After “Estia” Disappointing Results

Central Bank Governor Urges Banks to Find Ways to Handle Bad Loans After “Estia” Disappointing Results

The Central Bank of Cyprus (CBC) Governor Constantinos Herodotou said that the interest for “Estia” scheme, the government scheme aiming to reduce the volume of bad loans in Cyprus’ banks, was disappointing and urged the banks to find ways to handle those who would might be left out, the CNA reported.
“Estia” boosts borrowers` ability to repay their loans, as the government subsidizes part of the repayment instalments of the restructured loan.
Presenting the CBC`s budget to the Parliamentary Committee on Finance, Herodotou said that applications for “Estia” in mid-November were around 1050, many of which were insufficiently completed and worth around €206 m.  As he said, the total number of eligible applicants as of March 2019, was over 13,800 with a total value of €2.7 billion.
"Based on the disappointing results so far, banks should consider how to deal with those who may be left out of the scheme," he said. He added that the CBC was excepting from banks proposals through their three-year plan for managing non-performing loans (NPLs).
Referring to the reasons behind the low number of applications, he said that there were expectations for a new and better scheme, but noted that there was no such planning.  He also said that many people might not want to reveal their real assets, while the truly vulnerable won’t apply thinking that they would be rejected. He also said that bureaucracy could also be a deterrent.
At the same time, he stressed the importance of a stable legal framework governing out- court auctions, along with the existence of an effective insolvency mechanism to achieve the goal of reducing NPLs.
The Governor also referred to his initiative to bring before the parliament a complaint mechanism for borrowers, and said that he was in contact with the European Central Bank (ECB) and are extensively discussing the mechanism. He said that at this point, they had received some initial comments from the ECB and had been asked to send the relevant bill. He added that his goal was to bring the final bill within the next few weeks.
Regarding Cyprus`s efforts to combat money laundering, he said that the way some media reports presented the issue, did not reflect the serious and specific actions taken in the last years to confront the problem.
 The results of these actions, he added, have been recognized by both international organizations and banks, restoring confidence in Cyprus’ economy and banking institutions.
" CBC is working tirelessly to further strengthen the regulatory framework, to implement it effectively and to inform key international centers of the progress we are making. We have given the banks a clear message about what we expect, that is to say, the correct implementation of our law and instructions, but without affecting legitimate transactions,” he said.
He also said that next week, the Council of Europe Moneyval Committee will deal, with the 5th assessment of Cyprus on the basis of the standards and methodology of the Transnational Financial Action Task Force.
As he said, there was a big effort to show the evaluators the work being done and any recommendations will be taken seriously.
Referring to the potential risks to the Cypriot economy, he referred to external geopolitical developments as Brexit and trade wars, high domestic public and private debt, the Cyprus Investment Program and the historically low interest rates in relation to the challenges facing the banking sector.
In relation to Brexit he said that CBC estimated that the areas most affected would be tourism, real estate and software services exports with the situation being manageable.

He said, however, that in the long term the outcome could be worse than any scenario since UK could be an economic competitor of the EU.


Decrease in Registered Unemployed: November 2019

The unemployed persons, registered at the District Labour Offices on the last day of ...

Hellenic Bank Group Financial Results for The Nine-Month Period Ended 30 September 2019

On 3 September 2018 the Bank announced the completion of the acquisition of certain ...

Deposits and Loans Down in October

Total deposits and loans in Cyprus’ banks decreased in October 2019, according to ...



FM Christodoulides Condemns the Signing of The `Memorandum` Between Turkey and Libya

Minister of Foreign Affairs Nikos Christodoulides, condemned today the signing of the `memorandum` between Turkey and Libya "allegedly attempting to ...

Amazon Says Trump's 'Vendetta' Lost It $10bn Pentagon Contract

Amazon says Donald Trump’s “improper pressure” and behind-the-scenes attacks harmed its chances of winning a $10bn Pentagon contract. The ...

Yiorgos Lakkotrypis: Development of “Aphrodite” Gas Field Continues As Planned

The “Aphrodite” gas field is being developed as planned, Energy Minister Yiorgos Lakkotrypis said on Monday. He added that a special agreement with ...

Cyprus President Outlines Eleven Reform Proposals

Cyprus President Nicos Anastasiades outlined on Monday the government’s eleven reform proposals calling on the political parties to support their ...

Ayia Napa Marina Powered by Cablenet’s Fiberpower® Network

The Ayia Napa Marina has selected Cablenet’s independent network with fiberpower® speeds, in order to provide reliable connectivity ...

The Importance of Tax Incentives and The Predictability of the Tax

Investors who are interested in domiciling their business activities to a different country have to consider significant parameters such as the cost and ...

President Anastasiades: Let Us Not Follow the Course of Action That Turkey Seeks

Cyprus President Nicos Anastasiades spoke on Monday against following the course of action of provocation sought by Turkey, the CNA reports. President ...

Russia Banned for Four Years to Include 2020 Olympics and 2022 World Cup

Russia has been handed a four-year ban from all major sporting events by the World Anti-Doping Agency (Wada), the BBC reports. It means the Russia flag and ...