Bank of Cyprus will sell NPLs restructures to undisclosed bank

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The Bank of Cyprus has agreed to sell a small number of restructured NPLs (non-performing loans) between building & construction developers to a smaller lender; reportedly a currently unidentified bank. This will be the first time the legislation introduced in 2015 which permits the selling of loans to third parties, will take effect. The conclusion of these types of transactions indicates a reduction of both the bank’s non-performing loans, overall provisions and general loans. This is because there will be no recorded losses as the sale will be carried out at the loans’ book value, which will free up additional resources that can then be assigned to help additional restructurings.