Investor Presentaiton
Non performing exposure management
• The banks' governance, and the regulatory and
supervisory framework have been reformed to
introduce incentives for borrowers and lenders:
-
Enhancement of banks' capacity: Centralized
arrears management systems and dedicated
recovery units have been implemented throughout
the banking sector, whereas the largest banks have
proceeded with outsourcing of NPE management;
Legislative
measures: Legislation has been
enhanced to facilitate a more streamlined and less
time consuming asset recovery process: property
foreclosure, insolvency, sale of loans, swift transfer
of property title deeds and loan securitisation.
• Under the ESTIA scheme, which tackles NPEs
collateralised by primary residence, the state will
provide fiscal support to non-performing borrowers
that meet certain eligibility criteria. The scheme will
become operational during September 2019.
• Property prices mark a first increase albeit from a low
base.
Source: IMF, Ministry of Finance, Central Bank of Cyprus
Auction sales, no. of properties
21
2016
247
2018
Years to foreclose (est.)
Residential Property Price Index
120
100
BASIS Q1-2010
100,0
80
60
60
40
40
Q1-2006
Q1-2007
Q1-2008
10
2
2014
2018
Q1-2009
Q1-2010
Q1-2011
Q1-2012
Q1-2013
Q1-2014
MIN Q2-2016
73,2
Q3-2018
75,6
Q1-2015
Q1-2016
Q1-2017
Q1-2018View entire presentation