In a bid to improve their financial status, the Hellenic Bank and the Bank of Cyprus will be selling-off their bad loans worth a combined total value of €4 Billion.
Constantinos Herodotou, the governor of Central Bank of Cyprus recently announced in a brief to the House Financial and Budgetary Affairs Committee that the move is being made in light of the fact that the quantity of non-performing loans (NPLs) remain practically unchanged over the last few months. He went on to highlight how the offloading would help both of Cyprus’ largest lending institutions improve their portfolio dramatically.
Sales for the Bank of Cyprus will expectedly happen by the end of February, while that for the Hellenic Bank will happen at a slightly later date. The offloading will help both banks expel over 10% of their non-performing loans and help them concentrate on other more dynamic issues.