Cyprus needs to bring down level of bad bank loans: ECB, EU

Cypriot authorities should focus on helping their banks bring down their high levels of non-performing loans, the European Central Bank, the European Commission and the IMF said in a joint statement on Monday. While noting "favourable elements" in a recent Cypriot law aimed at facilitating the sale of bad loans, the institutions said more was needed.
"Reducing the excessive level of NPLs remains the number one priority," they said after a review of the country's progress under its bailout programme. "Going forward, the authorities should take all necessary actions to effectively implement this legislation, as well as the insolvency and foreclosure frameworks, in order to decisively reduce NPLs." The parties also said they have reached staff-level agreement on policies that could serve as a basis for completion of the review, expected sometime early next year.