Investor Presentaiton

Adoption of Foreclosure law and Insolvency framework Adoption removes the uncertainty of previous months, but implementation risks remains Foreclosure Law • Provides for the holding of private auctions and sales of mortgaged property by Creditors, without the involvement of governmental bodies New process expected to shorten significantly the time frame for foreclosing property The Bank is assessing the various provisions and expects to be using selectively the new enforcement procedures Insolvency framework • • י - Objective is to introduce a proper insolvency regime for both individuals and legal entities The aim of the framework is: For natural persons The introduction of the concept of Consensual or Non-Consensual Personal Repayment Schemes and Debt Relief Orders (both subject to satisfaction of certain criteria) through the appointment of an Insolvency Practitioner, maintaining, where feasible, the primary residence the modernisation of the existing bankruptcy procedures enabling bankrupt debtors to reactivate their economic activity after 3 years following their bankruptcy For legal entities The modernisation of the liquidation procedures, and The provision of a mechanism through the appointment of an Examiner for the restructuring of debts and finding ways of keeping a company a going concern. Key challenges & issues Untested process Courts not adequately resourced Lack of experience in court procedures Managing reputational implications Implementation of the various provisions of the law The Bank is assessing the various provisions of the laws, e.g. enforcement rights against guarantors Bank of Cyprus 47 KOINO WKYNPIW

View entire presentation