Applications for loan repayment suspension exceed 23,000 in Cyprus’ two largest banks

LoveCyprus — Wed, 08 Apr 2020 12:04:06 +0000

Applications for loan repayment suspension surpassed 23,000 in Cyprus’ two largest banks, as retail borrowers and companies are trying to preserve disposable income amid the economic activity shutdown due to the coronavirus pandemic.

The Ministry of Finance issued a decree allowing eligible borrowers, those who in end-February 2020 had no arrears exceeding 30 days to request a loan repayment suspension.

According to information gathered by CNA, in Bank of Cyprus, the island’s largest lender, applications by yesterday afternoon, exceeded 11,000 with the bank approving the overwhelming majority.

Sources from Hellenic Bank, the second largest lender with a predominantly retail loan book, applications exceeded 12,000.

95% of applications come from eligible borrowers, with 80% of applications coming from retail borrowers and 20% by corporate.

As part as retail borrowers are concerned, around half of the applications are associated with housing loans, consumer credit and credit card limits.

Both banks have clarified that loan suspension begins in end-March, following the approval of the law, irrespective of the date of the application’s submission, while the banks intent to return money in case of instalments paid before an application is submitted.

The European Banking Authority (EBA) and the Single Supervisory Mechanism as well as the local regulator, the Central Bank of Cyprus (CBC), have clarified that loans which will freeze under the legislated and general loan repayment moratoria will no be considered as non-performing, while banks following by the EBA and the CBCB have announced they will not compound interest over the nine-month suspension period.

Source: CNA

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Applications for loan instalments suspension surpass 7,000

LoveCyprus — Fri, 03 Apr 2020 06:28:05 +0000

Applications for loan instalments in Cyprus have exceeded 7,000 after the government announced a moratorium on loan instalments for nine months as part of extraordinary measures to mitigate impact of the coronavirus epidemic.

The House Plenary approved a law for taking extraordinary measures in financial institutions and regulatory authorities and the Finance Minister issued a decree calling for a moratorium of loan instalments for nine months. These measures were introduced after the European Banking Authority gave clarifications and namely that a loan subject to a payment moratorium stemming from public measures, cannot be considered as non-performing.

According to data gathered by CNA from the island’s two largest banks, applications so far have exceeded 7,000, with no data concerning the total value of these loans.

Sources from Bank of Cyprus, the island’s largest lender told CNA applications have surpassed 5,000 with a rising trend.
Sources from Hellenic Bank told CNA that the bank has processed more than 2,000 applications with nine out of ten applications being eligible for loan instalment suspension.

Both banks have clarified that loan suspension begins in end-March, following the approval of the law, irrespective of the date of the application’s submission, while the banks intent to return money in case of instalments paid before an application is submitted.
According to the Finance Minister’s decree, eligible borrowers are natural persons, public organisations, self employed persons and companies which had no arrears over 30 days on 29 February 2020.

Source: CNA

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Applications for loan repayment suspension exceed 23,000 in Cyprus’ two largest banks

Applications for loan instalments suspension surpass 7,000