The taxation monitoring committee of Cyprus declared that the toxic loans are posing a threat of the economic growth of the country, regardless of the progress in the financial sector. Cyprus must make quick and decisive measures to combat numerous unpaid loans in the banking sector in order to reduce further losses.
With reference to the IMF report, the financial committee expressed its concern with the fact that in case if the reforms will not be done now, then future losses of the Cyprus financial institutions will be around 15 billion Euros, which will be reduced by 50% in case if the reforms will be made.
Currently the unpaid loans make up about 50% of the total loan portfolio of the whole banking system.
