CYPRUS: Bank bureaucracy at meeting between Anastasiades - CBC Governor

Cyprus President Nicos Anastasiades and Central Bank of Cyprus Governor Chystalla Georghadji will be discussing ways to deal with the bureaucracy of banks as regards loans at a meeting they will have soon, credible sources say.

The same sources say that President Anastasiades will be unsparing on the practices followed by bankers and is said to show `zero tolerance` on those who choose to follow past practices.

Banks must adapt, is the message conveyed to bankers, they say.

At the same time President Anastasiades is said to be ready to consult with political parties on the way forward if his referrals on four items of legislation to the Supreme Court regarding foreclosures are not successful.

The Supreme Court announces its decision on Friday.

Cyprus agreed with its international lenders collectively known as the Troika (EC, ECB, IMF) a €10 billion bailout. So far the country has received five tranches amounting to 5,77 billion from the EU and the IMF.

The 6th Programme tranche was not disbursed in September 2014 (€433 mln) due to non-compliance in introducing legislation on foreclosure as demanded by the Programme partners.

It is also noted that the Cyprus President will not proceed with further pay cuts in the public sector. However, the government will be holding consultations with trade unions on disbursing a lump sum payment given to public servants upon their retirement in installments.

The government is also preparing a package of actions which will aim to further boost growth, other credible sources say.