The meetings come after parliament passed last week one of two remaining pieces of legislation to tackle the country’s high level of non-performing loans (NPLs).

“No magic solution and no legislation alone can solve the problem. Collective effort is needed from all political parties,” said Prodromos Prodromou, spokesman for the ruling Democratic Rally Party (Disy).

The vote to allow banks to sell bad loans onto third parties passed with 26 votes in favour and 25 against. Disy and the opposition Democratic Party (Diko) supported the bill while the Progressive Party of Working People (Akel) voted against.

Anastasiades will meet with Central Bank Governor Chrystalla Georhadji today, and with representatives of Bank of Cyprus, Hellenic Bank and Central Cooperative Bank later in the week.

He will emphasize the need not to “strangle small borrowers”. Cyprus has €27 billion in NPL’s.

Passage of the law is a key step in getting a clean bill of health from the Troika of international lenders.

The law had been pending for several months. Hopes that it would be passed before the summer recess were not fulfilled.

In the latest Memorandum of Understanding (MoU), the Troika of international lenders set a deadline of the end of September for passing the law. Another law allowing for assets (loans) to be securitised is due to be passed by December.

Source: InCyprus