Bad bank would reduce debt mountain
February 15, 2021
Economists have welcomed the idea of creating a state-owned bad bank to help the banking system offload toxic loans to focus on supporting a battered economy post-pandemic.
Bank of Cyprus Financial Research director Ioannis Tirkides told the Financial Mirror, there is no better time to table such an idea as the Cypriot economy is going through a crisis which, inevitably, will create more unserviceable debt.
“The Cypriot economy was already going through a transitional period with banks trying to offload non-performing loans (NPLs) accumulated over the past year when it was struck by COVID.