CYPRUS: €9.8 bln of NPLs have no security

 * Central Bank to announce rate cuts on loans *

Nearly a third of the 29.1 bln euros worth of non-performing loans have no security, Central Bank Governor Chrystalla Yiorkadji told a parliamentary committee meeting on Tuesday, adding that in addition to the 9.8 bln of unsecured loans, a further 5 bvln are unsecured, but serviceable loans.

Of the unsecured NPLs, she said that 4.7 bln euros are held by corporates and 4 bln by individuals, of whom 1.4 bln have outstanding loans for property.
Yiorkadji added that the total for unsecured NPLs and performing loans is now at 14.7 bln euros, but that banks have made provisions for 10.8 bln.
As regards the value of personal guarantees, the Governor said she did not have a specific number, but that this will be clarified after the law on foreclosures is passed and banks start their recovery process.
She also said that the Central Bank should be making an announcement as regards the reduction of rates on housing loans in about 15 days’ time, adding that this will increase the pressure on commercial banks to improve the rate of loans restructuring.
The bank said that to-date, the value of restructured loans stood at 3.3 bln euros.