While lending interest rates in Cyprus are somewhat higher than elsewhere in the Euro area, they have been falling lately, European Commissioner for Economic and Monetary Affairs and the Euro Jyrki Katainen said in a written reply to a relative question by Cypriot MEP Takis Hadjigeorgiou.
Katainen said that “the Commission is aware of the hardship that the crisis has brought. It is reflected in the high rates of non-performing loans, which are also putting a burden on banks` capital buffers”.
“The commitments taken from the Cypriot authorities in the latest Memorandum of Understanding, related to improving the insolvency framework, the foreclosure laws and the law on the Financial Ombudsman, attempt to strike the right balance”, he concluded.
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