The future of the Cypriot banking system looks brighter after Central Bank Governor Chrystalla Yiorkadji stated that the problem of non-performing loans (NPLs) will start to be resolved in approximately 3 to 5 years, reports ServPRO.
“In my capacity as Governor of the Central Bank of Cyprus, I wish to convey a message of confidence, regarding the current state of the banking industry and its future prospects” she said, also pinpointing the positive signs of the gradual recovery of the banking system and improvement in NPLs.
During the 6th Alpha Bank Economic Congress, in Nicosia, last Thursday, she explained that the main causes of the increase in NPLs were due to the unexpected economic crisis and the major decrease in wages in all business sectors, basing the facts on an ongoing study by the Central Bank of Cyprus.
Mrs. Yiorkadji also noted that a small portion of households was and still is not paying its loans even though they could do so with a manageable degree of difficulty. “This alludes to possible strategic default behavior by a proportion of borrowers” she said.
Read more on the website ServPRO.