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Toolbox to be used for restructurings

19/11/2015 14:26
The target for the acceleration of loan restructurings was conveyed to the president of the Republic Nicos Anastasiades by the heads of the three big banks, bank of Cyprus, Hellenic bank and the Cooperative.

In their statements after the completion of their meeting with the president, the three CEOs expressed their common position that after the related bills adopted by the parliament there is room for speeding up restructurings.

They said it is not in the banks' priorities to sell household loans and stressed the importance of focusing on each client separately.

They pointed out that loan restructurings have increased compared to ten months ago.

The BOCY outgoing CEO John Hurican said that so far the bank proceeded to 10.500 restructurings, 76% of which are viable.

He pointed out that figures concerning non-performing loans are especially high rendering the banks' task difficult.

He noted that for the bank of Cyprus, foreclosures and sales of loans associated with households is not an aim in itself.

HB's CEO Bert Pijls said that there cannot be a categorical statement for borrowers as to what should be done about non-performing loans.

He said that all factors should be taken into consideration such as unemployment or whether loans concern someone’s first residence. He noted that solutions will be found with the use of available tools, based on each case, one case at a time.

In his statements, Nicolas Hadjiyiannis, president of the Cooperative Central Bank said that it was a constructive meeting where the need to continue the effort of loan restructurings was stated.

He said that there are good results by all banks and the Cooperative and referred to the plan prepared by the Cooperative in order to provide incentives for more restructurings and have more flexibility. As regards the president’s suggestions, he said that they were on the same line and the need for all tools to be used was stated, as well as the need to combine solutions for each case.

Mr. Hadjiyiannis said that clients’ confidence is returning as economic indicators are improving and he expressed confidence for more results on the issue of loan restructurings noting that a financial institution needs 1-2 years to prepare for this process.

“We are in a good course. We have seen results” he noted.

The chairman of the board of the Bank of Cyprus Josef Ackermann left the meeting without making any comments.