Central Bank Spokeswoman Aliki Stylianou referred to CB actions for the management of NPLs today, noting that the CB promotes all measures within its jurisdiction and fully supports the strategy for dealing with NPLs, by enhancing viable restructurings and ensuring financial stability.

In her written statement Mrs. Stylianou adds that except from key steps for the management of non-performing loans, which have been initiated by the CB, the economic recovery of our country is required, to solve the problem of non-performing loans.

She notes that CB is working closely with experts from both the IMF and the Ministry of Finance for the necessary adjustments to the legal and regulatory framework.

In related actions taken, she includes the update of the insolvency framework, updating the Arrears Management Framework, the fact that targets were set for restructurings by credit institutions to deal with possible delays and the issuance of a directive for loan impairments, consistent with international practice.

At the level of credit institutions, following action by the CB relevant departments were set up for handling creditors who are facing problems with their debts.

Therefore, Mrs. Stylianou adds, although it will take time for a more efficient handling of non-performing loans, basic steps have already been made and now we move on with further steps in this direction.

With reference to international experience, she noted that the course of non-performing loans after a financial crisis culminates, on average, for a period between one and two years after the crisis and then takes a long time until a substantial reduction in their rate starts.

"In addition, these data show that the economic recovery is one of the major driving forces for the successful resolution of NPLs" she stressed.