The Central Bank of Cyprus advised banks to submit their progress of restructuring loans in Cyprus on a quarterly basis.
The goals will apply to the entire loan portfolio and to four sub-portfolios. These sub-portfolios regarding the namely mortgages, other loans to households, loans to financial firms over €1 million and loans to non-financial firms up to €1 million, as Central Bank stated in an email send this week. The first submissions regarding this information will concern the second quarter that ended in June.
According to the Central Bank, banks were asked to submit their performance regarding the four indicators, as well as their goals for the two last quarters of 2015. For the third quarter, Banks are obligated to submit their actual performance and their revised goals for the next quarter as well as for the first quarter of 2016.
If in any case the banks will fail to meet their goals set by the Central Bank, they will need to submit detailed explanations and information on how they plan to rectify the situation they intend to take.
A Representative from the CBC stated:
‘The Central Bank of Cyprus has imposed an upward revision of the banks’ targets in cases where it is considered that the targets set by the banks were low. With every new submission the Central Bank of Cyprus will be reviewing and revising the targets on the basis of the developments.’