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Cypriot Passport Acquisition and Permanent Residence Permit
Repossession Property Yield Properties

Latest news

  • 16 July 2018 Andreas Byras Mayor of Larnaca interview in Politis newspaper

    "There will be pressure. Neither with the issue of the harbor, nor with the... read more

  • 10 July 2018 Hellenic Bank Step towards the conclusion of the agreement

    The decision of the House of Representatives yesterday is still a decisive... read more

  • 22 May 2018 Limit on citizenship scheme announced

    The Council of Ministers has decided to restrict the number of citizenships... read more

  • 3 May 2018 Oil Tank demolition in progress Irini Gardens Newzoe Developers Ltd

    The first oil tank on the old Larnaca-Dhekelia road was demolished on... read more

  • 2 May 2018 Новые строительные проекты на Кипре

    Новые строительные проекты на Кипре read more

Moody s Improves financial structure of the Cypriot banks

   

Nicosia: The increase in deposits in the Cypriot banking system improves the financial structure of the Cypriot banks, considers the Moody`s rating agency in response to the increase in deposits in the banking system in 2016. 

The financial statement (Moody`s Credit Outlook) issued today , the agency notes that the annual increase in deposits in 2016 was the first, after four years. 

"The increase in deposits was driven more by stable domestic deposits and is considered positive because it improves the financial banking structures", he says, adding that the rise in deposits demonstrates the increased households' ability to service its high debt levels, a significant proportion of which remains problematic. 

According to Moody`s, the increase of € 3 billion to the total deposits of € 49 billion is the highest since 2013, demonstrating the improved financing conditions in a system where the confidence of depositors remains fragile after losses (due to clipping) during the banking crisis of 2013. 

"this improvement reflects the strong economic growth, which we estimate will reach 2.7% in 2017, the lowest unemployment and the integration of the economic adjustment program in March 2016, "the firm says. 

According to Moody`s, these factors have partly led to restore confidence of depositors, leading to the gradual return of "money from layers", while auxiliary acted and high income from tourism. 

Meanwhile, according to the firm, increasing contributor Cypriots and other residents of the euro area, particularly companies from Greece. 

Prolonged recovery process of bank balance sheets 

The firm believes that the improved financial situation of households would strengthen their ability to serve high debt levels. 

"However, the banks' balance sheets recovery process will be a long process because of the long healing periods on restructured loans before being classified as performing, and the considerable amount of problem loans, which have not yet structured," he adds. 

Additionally, o Moody`s notes that the process of improvement of bank balance sheets will be prolonged due to the limited recovery through the low volume of sales of assets in the real estate market and the difficulty of changing the culture of Cypriot households, as demonstrated by high rates of restructured loans in arrears. 

Finally, the agency warned that a weakening of banks' solvency level would mark deposit outflows While noting such a possibility is not to forecast. 

http://www.philenews.com/el-gr/oikonomia-kypros/146/350401/moodys-veltionetai-i-chrimatodotiki-domi-ton-kypriakon-trapezon