Download AMAN Application from Apple store and Google play                                Follow us on : Twitter - Facebook - YouTube - Instagram

STATUTES GENERAL ASSEMBLY SECRETARY GENERAL CONTACTS Follow us on Twitter Follow us on Facebook Follow us on Instagram
Daily News
Lusa - Business News - Portugal: Investment in Cascais Line approved, lack of funds for trains
Lisbon, Dec. 12,2019 (Lusa) – The minister of infrastructure on Thursday that there is already an investment approved for renewal...
Lusa - Business News - Angola: Transfer of $500M from BNA without evaluation by international lawyers
Luanda, Dec.12,2019(Lusa) – António Samalia Manuel, involved in the undue transfer of $500 million from the National Bank of Angola...
Lusa - Business News - Mozambique: Central bank maintains interest rate due to 'military instability'
Maputo,Dec.12,2019 (Lusa)-The Monetary Policy Committee (CPMO) of the Banco de Moçambique decided on Thursday to keep the monetary policy interest...
HINA - €311 m from Cohesion Fund to be invested in Hrvatski Leskovac-Karlovac railway section
ZAGREB, Dec 12 (Hina)-The European Commission on Thursday approved an investment of more than €311 million from the Cohesion Fund...
Lusa - Business News - Portugal: Government to try to 'convince' European community to finance trains
Lisbon, Dec. 12, 2019 (Lusa) – Portugal’s infrastructure minister Pedro Nuno Santos on Thursday said that the government is trying...
Lusa - Business News - Angola: Country announces €600M debt payment to Brazil
Luanda, Dec. 12, 2019 (Lusa) - Angola's finance ministry on Thursday said that it had reached an agreement with Brazil...
Lusa - Business News - Angola: Next year’s budget approved by parliament, opposition against
Luanda, Dec. 12, 2019 (Lusa) - The Angolan parliament on Thursday approved the 2020 budget with 132 votes in favour...
Lusa - Business News - Macau: Great Bay, ties to Portuguese-language world can help diversify economy
Macau, China, Dec.12,2019 (Lusa)–China’s Great Bay project for the region that includes Macau, Hong Kong and part of the mainland,...
Lusa - Business News - Macau: Territory has 'complementary role' in ties with Portuguese-language world
Beijing, Dec. 12, 2019 (Lusa) - Twenty years after the handover of Macau from Portugal to China,...
CNA - وزير المالية: الموافقة على الموازنة سيسمح بالاستمرار في طريق الاستقرار الاقتصادي
وكالة الأنباء القبرصية - قبرص / نيقوسيا - مهى ميخائيل
رحب وزير المالية الجديد كونستانتينوس بيتريديس بموافقة البرلمان على الموازنة لعام 2020، مشيراً إلى أن الميزانية الجديدة تسمح للحكومة بالاستمرار في...
Lusa - Business News - Mozambique: Japan provides €53M for construction of Nacala power plant
Maputo, Dec. 12, 2019 (Lusa)-The Japanese government is to provide $60 million (€53 million) for the construction of a power...
Lusa - Business News - Portugal: EU industrial production down in October, Portugal counters trend
Brussels, Dec. 12, 2019 (Lusa) -In October, Portugal recorded the biggest monthly increase (3.1%) in industrial production, in contrast to...
Lusa - Business News - Portugal: Lisbon stock exchange - three companies delist in 2019
Lisbon, Dec. 12, 2019 (Lusa) – Three more companies left Lisbon's stock exchange in 2019 - Transinsular, Compta and SAG...
Lusa - Business News - Macau: Hong Kong protests will have no influence on Territory - Economist
Macau, China, Dec. 12, 2019 (Lusa) - The Economist Intelligence Unit (EIU) following Macau's economy on Thursday predicted to Lusa...
Lusa - Business News - Portugal: Lisbon stocks open Thursday with PSI20 rising 0.05%
Lisbon, Dec. 12, 2019 (Lusa) – The Lisbon Stock Exchange opened Thursday's session on positive ground, with its main index,...
Lusa - Business News - Macau: Economist forecasts 5.5% recession in economy in 2019, 3,3% in 2020
Macau, China, Dec. 12,2019 (Lusa) - Analysts from the Economist Intelligence Unit (EIU)following the economy of Macau have on Thursday...
CNA - Budget approval allows the state to continue on the path of economic stability, FinMin says
CNA - CYPRUS/Nicosia - Cyprus new Finance Minister Constantinos Petrides welcomed the parliamentary approval of the 2020 state budget, stating...
CNA - البرلمان القبرصي يقر موازنة 2020
وكالة الأنباء القبرصية - قبرص / نيقوسيا - مها ميخائيل
صوت مجلس النواب بكامل هيئته مساء أمس الأربعاء على ميزانية الدولة لعام 2020 بأغلبية 29 صوتاً ومعارضة 23.
كما صوت النواب كذلك...
Lusa - Business News - Portugal: Top headlines on Thursday
Lisbon, Dec. 12, 2019 (Lusa) –Civil servants will receive a 0.3% pay rise in 2020 and the UK general elections...
CNA - Amendments to foreclosure framework hamper banks’ efforts to reduce problem loans, Moody’s warns

CNA - ΝICOSIA - Moody’s rating agency warned on Thursday that the amendments approved by the Parliament of Cyprus to the legal framework governing foreclosures were "credit negative", as it expected that they would "hamper banks’ efforts to reduce problem loans".

The credit rating agency said that the amendments, approved last week, “will likely lengthen the foreclosure process”.

“The amendments are credit negative for Cypriot banks because they hamper the banks` organic efforts to reduce large stocks of nonperforming exposures (NPEs), which were 30% of gross loans as of December 2018, and also make inorganic sales of NPEs less attractive to investors. A failure to reduce NPEs will increase provisioning needs for the banks”, Moody’s said.

“The amendments will likely make it more challenging for banks to foreclose on collateral held against defaulted borrowers. Importantly, the amendments broaden the reasons based on which a borrower may appeal the foreclosure process and challenge a property`s auction, which will likely cause long delays in the process because of inefficiencies in Cyprus’ judicial system, with long delays and a big backlog of cases”, the rating agency added.

Moody’s noted that the amendments passed almost a year after improvements to the foreclosure framework were adopted, which have started to produce results, citing central bank data, according to which in first-quarter 2019, 16.6% of properties where the foreclosure process had commenced were sold at first auction, up from 4.4% for second-quarter 2016-fourth-quarter 2018.

“At the same time, the newly introduced amendments form a less credible threat to bring defaulters to the negotiating table, encouraging weak payment discipline and strategic defaults” it added.

The foreclosure process changes will likely either affect the price of potential sales of NPE portfolios or deter potential investors from acquiring them because of uncertainty about the time it will take to foreclose, it said, warning that “a large discount, compared to previous portfolio sales, would lead to losses and increased capital needs for the banks”.

Moody’s said it expected all banks within the system to be affected by these changes, including our rated banks, Bank of Cyprus and Hellenic Bank Public Company Ltd.

The rating agency noted that “the amendments allow the defaulted borrower to obtain a court decision that stalls a foreclosure process if it is proved that a bank has not taken all necessary actions required by the central bank directive to restructure a nonperforming loan. At the same time, the amendments clearly state the reasons a defaulted borrower can cite to challenge the auction of the property. Amendments also include, among others, extending to 45 days from 30 days the payment due date following a notice and the auction of a property following a notice; and preventing the sale of a property at below 80% of its market value for six months, from three months previously, while maintaining a floor of 50% of the market value for any potential sale”.

Another set of amendments, said Moody’s, freezes foreclosures on Estia2-eligible loans until 1 October, with the application process of eligible borrowers scheduled to begin in early September. “We do not expect this to materially affect the banks, which are not currently foreclosing on Estia-eligible loans”.

Following the approval of both these set of amendments, the Minister of Finance is likely to suggest an appeal of the amendments to the president, in line with his constitutional right, said the rating agency.



Cyprus News Agency, 21 Academias Avenue, 2107 Aglantzia, Nicosia
Tel. 22556000, Fax. 22556100,, website:

Agency : CNA

Date : 2019-07-19 09:58:12


Copyright © Alliance of Mediterranean News Agencies 2017