Issues of restructuring and the behavior of the employees of the Banks, the Investment Funds and the Management Companies, towards the Borrowers, were discussed on Tuesday in the meeting that the General Manager of the Cyprus Banking Association, Michalis Kammas, had with the President of SYPRODAT.
As mentioned in today's announcement of SYPRODAT, during the meeting the issue of restructuring was mainly discussed, in combination with the necessity of the removal of the Over-Debts, which usually leads to debt sustainability of the Borrowers. This fact, it is noted, which in turn leads to the avoidance of sales and contributes to the refinancing of companies with a beneficial impact on the economy.
As mentioned, the discussion was in the light of the effects of the war in Ukraine, on the Cypriot economy, ie the increase in prices of all goods and consequently services, inflation and the impact on the income potential of Borrowers, which is decreasing. This fact, it is noted, will lead to an increase in Non-Performing Loans.
The meeting, the announcement concludes, was held in a constructive atmosphere and it was agreed to maintain continuous and close communication in order to resolve any problems that arise between the Bank and the Borrower during the handling of Non-performing Loans.
SOURCE: CIPE