Outgoing Bank of Cyprus CEO John Hourican has accused politicians of being populist and making the non performing loan (NPL) situation in the banking sector worse with their actions.
In an interview with the Associated Press, Hourican said it has been embarrassing for him to explain to people abroad, actions that had delayed and diluted the foreclosures legislation, which was supposedly designed to help banks deal with NPLs effectively.
Hourican told the AP that the law was neither strong enough nor its implementation swift enough. Gaps, like where auctions on foreclosed property will be held, were an obstacle, he said.
The outgoing CEO suggested that the politicians’ actions encouraged borrowers to delay repaying their dues, thinking they would get a better deal.
“The parliamentarians have decided heading into an election year that it’s good to raise populist measures and what they’re doing is driving up delinquencies and not helping us fix them,” Hourican said.