Tag: NPLs

24 Jan 2016 Why Bank of Cyprus may be Cyprus’ best managed bank

Mention the words ‘bank’ and ‘Cyprus’ in the same sentence and it is likely to bring back dramatic images of queues at cash tills and angry depositors. Two banks at the centre of the 2013 crisis were the now-defunct Laiki and Bank of Cyprus (BoC). BoC inherited just over €9bn in Emergency Liquidity Assistance (ELA) from Laiki, in addition to the €2bn or so it had on its own books, and things were initially very precarious for the bank, even after the bailout programme began. So why am I suggesting that BoC may be the best managed bank in Cyprus?

05 June 2015 Cyprus banks results: better than you think

One of the first figures that hit twitter when Bank of Cyprus (BOC) issued its first-quarter results last week was the non-performing loan (NPL) ratio of 63%. The person tweeting pondered of this meant that the bank was in serious trouble and that it would need yet more capital in a hurry. However, there are a number of reasons to be cheerful about the results of that bank that single-handedly accounts for around 40% of the entire sector.

27 August 2014 Why non-passage of foreclosure bill could be catastrophic for Cyprus

If the foreclosure bill does not pass before the EU-wide stress test deadline, this could be a catastrophe for Cyprus that will be even worse than the one we narrowly missed last year. Those who look at a modest debt repayment schedule in the next few months are missing the point. It is not a default on debt payments that we need to fear; it is the collapse of three banks. Here are the reasons why.