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Stricter measures against big debtors

08/09/2004 09:17
On a confidential circular sent recently to the management of the commercial banks, the Central Bank asks for stricter measures against big debtors. StockWatch sources reveal that the Central Bank has urged banks to “close” their exposures with big businessmen, taking legal action against them or taking additional guarantees.

In the circular, Central Bank Governor Christodoulos Christodoulou urges the banks to “close” exposures (loans without mortgages by security) of more than half a million pounds either by filing legal action against the debtors and guarantors or by taking additional securities, within the period of four months. Commercial banks are also urged to claim exposures of more than £100 thousand that have been written off.