High private debt continues to limit the potential growth of Cypriot banks and increases financial vulnerability, which is a credit negative for banks, Moodys says, in light of the latest data released by the Governor of the Central Bank, according to which less than 10% of non-performing loans (NPLs) that have been transferred out of the banking system have been settled.
According to a note by the Governor of the Central Bank to the parliamentary Finance Committee, a total of €19.2 billion of NPLs have been transferred outside the banks, while less than 10% or €1.8 billion of these loans have been settled through repayments and property-for-debt swaps, with the balance of NPLs outside the banking sector amounting to €17.4 billion.
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CNA
Contents of this article including associated images are owned by CNA
Views & opinions expressed are those of the author and/or CNA
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