Troika examines crucial issues of Cyprus banking sector

The crucial issues of Cyprus’ banking sector were examined in a Tuesday’s meeting of Cyprus’ international lenders at the Central Bank of Cyprus (CBC), in the context of the second review of the Cypriot adjustment programme.

The Troika mission (European Commission, European Central Bank and the IMF),will continue tomorrow the discussion of issues related to the Cooperative Banks and the Bank of Cyprus.

Spokeswoman of the Central Bank Aliki Stylianou told Monday the press that regarding the financial sector the process began with an overview at the Ministry of Finance and then specific issues were analyzed in a meeting at the CBC.

These issues concern implementation of the restrictive measures, the progress achieved in the Cooperative sector in relation to the restructuring and the merger of co-op banks, non-performing loans, regaining confidence in the banking sector as well as monitoring households and non-financial firms debt burdens.

They also discussed the supervisory activities of the CBC and the amendment of legislation on expanding the powers of the Financial Ombudsman to include mediation of complaints for restructuring loans.

Explaining the procedure followed, the spokeswoman of CBC said that first the Cypriot side presents its positions and then the Troika delegation asks questions. She clarified that no decisions are taken in these meetings.

The discussion will continue tomorrow, with an emphasis on the Cooperative sector and the Bank of Cyprus.

Troika technical teams will continue meetings on Wednesday with other ministries and departments in the Republic of Cyprus

On March 25 Cyprus and the Troika agreed on a €10 billion bailout which featured an unprecedented haircut on uninsured deposits in a bid to recapitalize Bank of Cyprus, the island`s largest lender. The bailout also provided that Cyprus Popular Bank, the island`s second largest bank would be wound down with its good part absorbed by Bank of Cyprus.