Cyprus borrowers association welcomes efforts to address concerns

The Cyprus Borrower Protection Association (Syprodat) on Thursday said that the “serious and vigorous efforts” made by the Minister of Finance to provide relief to borrowers have been warmly welcomed and appreciated.

The association further revealed that it has already requested a meeting with the Ministry of Finance, and the anticipation for this meeting remains high.

During the meeting, the association plans to verbally express its positions and viewpoints to Finance Minister Makis Keravnos, addressing the resolution of problems faced by borrowers.

This includes the association’s stance on the key issue of reducing Non-Performing Loans (NPLs) in the Cypriot banking system.

“It’s imperative to differentiate between the effort to support the vulnerable and the matter of NPL reduction,” the statement clarified.

According to the statement, the association said that it “welcomes all measures announced by the government for the first matter, for which there is hope that they will be implemented as soon as possible”.

“For the second matter, our firm position is that it can only be tackled through sustainable loan restructuring and not through auctions,” the association added.

The announcement also emphasised that the comprehensive approach to the issue of further reducing NPLs is expected to stem from the ongoing implementation of a relevant initiative by the Central Bank of Cyprus (CBC).

Moreover, the association voiced its support for the positions of the Association of Cyprus Banks, noting that they too have observed the banks’ efforts towards consensual restructuring solutions for loans.

This sentiment extends to Debt Management Companies as well, Syprodat noted. The statement also highlighted that the landscape has shifted, with many instances where borrowers have been aided in achieving proper and sustainable restructuring, in line with the Central Bank’s Directive and Code.

The association’s conclusions are drawn from numerous daily communications with borrowers, the statement explained.

Regarding the topic of taxing bank profits, Syprodat pointed out that “we have yet to form a stance on this matter”.

“However, given recent events in Italy, we believe that the issue should be treated with the utmost seriousness,” it added.