Borrowers who suspended their loans are restructuring

Many borrowers who opted to use a scheme suspending loan payments for nine months in a bid to cope with the financial fallout of the coronavirus were now restructuring them, it emerged on Friday.

According to a source at the Bank of Cyprus, signs in the first month after the end of the moratorium were encouraging as client response was exceptionally positive.

“It transpired that there is no generalised problem, but we must remain vigilant,” the source said. “First indications are better than expected but we cannot yet relax.”

The source said the lender was prepared to support clients who face problems after the end of the moratorium, that came in force in March last year.

Bank of Cyprus has already done a lot of preparatory work, but clients also showed a positive approach. The lender was now turning its focus to the next few months to make sure the situation remains without problems so that it can support small and medium businesses when the economy restarts.

The bank said a lot of loan restructures have gone ahead and hundreds more were expected by the end of the quarter.

Clients under the most pressure were closely monitored, and the lender remained in touch with them in a bid to avoid future problems.