The central bank also said that lowering the amount of NPLs needs to be sped up through the use of the tools provided to financial institutions, including the laws passed on foreclosures, insolvency and title deeds.

According to the central bank’s report, non-performing facilities continue to be the largest ‘threat’ to the Cypriot economy, necessitating the need to lower them.

The central bank said that from the first quarter of 2017 to March 2018, NPLs dropped by €3.5 billion but businesses outside the financial sector continue to be the most overindebted.

A large amount of development was noted by the central bank in the first quarter of 2018, which resulted in a GDP estimate for the year at 4%.

The central bank added that the 2019 GDP is estimated to be slightly higher.

According to the European Banking Authority the Cypriot banking sector had one of the largest drops in NPLs, due to the sale of the Bank of Cyprus’ NPLs worth approximately €2.8 billion.

Source: Cyprus Mail