Cyprus’ Central Bank could take over a decade to effectively reduce NPLs [translations pending] [translations pending]

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Cyprus banks have made inadequate headway in reducing the islands large number of NPLs (non-performing loans). The Central Bank of Cyprus is working on new proposals to make the existing framework more effective, and to accelerate the process. Ms Christalla Georghadji, the Governor of the central bank stated: “Cyprus’s banking sector came to this point due to a lack of availability of instruments that banks could use.” With the current economy growing at 3% it could take longer than a decade to successfully reduce stagnant loans.