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
Auction sales, no. of properties
21
been
measures:
has
Legislation
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
became operational in September 2019.
• Property prices mark a first increase albeit from a low
base.
Source: IMF, Ministry of Finance, Central Bank of Cyprus
2016
247
2018
Residential Property Price Index
120
110
100
90
80
70
60
50
40
Q1-2006
Q1-2007
BASIS [Q1-
2010]
100,0
Q1-2008
Q1-2009
Q1-2010
Years to foreclose (est.)
10
2
2014
2018
Q1-2011
Q1-2012
Q1-2013
Q1-2014
Q4-2018
75,7
MIN [Q2-2016]
73,2
Q1-2015
Q1-2016
Q1-2017
Q1-2018
26
26View entire presentation