Cyprus: Insolvency Laws on the Way According to Finance Minister

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The Cypriot government is in the process of preparing proposals in order to enhance the insolvency and foreclosure laws in an attempt to target non-performing loans, according to Finance Minister, Harris Georgiades. This includes especially the loans in the state-owned co-op bank, which is in the process of being sold and potentially split into two parts.

It has been stated by the finance minister that depending on investor interest in the co-op bank, the government planned to set up a loan management body to handle its non-performing loans at the 8th Nicosia Economic Congress. In addition, the terms will be set by the European supervisors.

Georgiades went on to say that other banks will be able to transfer their loans to the NPL administrator and those debtors who meet certain income and property criteria will be given support. Following this, the state, which nationalised the co-ops in 2013 through a EUR €1.7 billion injection, is seeking to dispose of the bank, or part of its assets in a process which started in March.