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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 26
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