About 1000 borrowers are going to be invited to the table for negotiations by the Bank of Cyprus in order to find the "golden ratio" for Non-Performing Loans (NPLs), which have a principal residence mortgage worth up to €350.000 and are currently in legal proceedings (pending proceedings) .
In this context, the CEO of the Bank of Cyprus, Panikos Nikolaou, met today with the leadership of the Association for the Protection of Bank Borrowers (SYPRODAT), in order to inform them about the solutions that the financial institution is working on.
The purpose is to pay off the value of the property
Describing today's meeting as "particularly constructive", the Director of SYPRODAT, Jenny Papacharalambous, stated that "it was the product of an initiative by the Bank of Cyprus, which we welcome".
Speaking to Economy Today, Mrs. Papacharalambous pointed out that the aim of the Bank of Cyprus is to reach out to the affected borrowers, in order to find a solution that will be close to the value of the residence, regardless of the current amount owed.
For example, as he explained, in case the value of a property amounts to €350 thousand and the loan today reaches €500 thousand, the Bank will be willing to agree to the repayment of the amount that will be close to the value of the property.
In the event that the borrower does not have the necessary funds in order to repay the amount or obtain an additional loan, the Bank will seek to find a solution through members of his family environment, who will be young and primarily creditworthy, so that can undertake the servicing of the loan, pointed out the Director of SYPRODAT.
It is worth noting that the cases in this category in the Bank of Cyprus' NPL portfolio are estimated to range between 700 and 1000.
Let others follow
At the same time, Mrs. Papacharalambous expressed the opinion that the example of the Bank of Cyprus should be followed by other banking institutions, at least the largest ones, as well as credit acquisition companies. As the Association said, in addition to the discussions that will begin with the political parties on the issues of divestments, it is particularly focused on sustainable restructurings.
In today's meeting, in addition to the CEO of the Bank of Cyprus, the Director of the Risk Management Division, Dimitris Dimitriou and the Executive Director of the Financial Division, Eliza Livadiotou, also participated, among others.
A relevant announcement is expected to be issued tomorrow with more information about the next steps of the Bank of Cyprus.
Source: Economy Today