articles | 14 August 2016

Bank of Cyprus aims to approve all loans which fulfill requirements

The intention of the Bank of Cyprus is to approve all loan applications which fulfill the necessary requirements, said the bank in a press release, adding that since the crisis began it has provided €1 billion in fresh loans, while this year’s loans have more than doubled compared to 2015.

In its announcement the Bank of Cyprus notes that, according to the Bank Loaning Survey by the Central Bank, there is an increase in demand for loans in the market, in particular business and housing loans.

At the same time, the provision of loans is coupled with stricter loan terms, to avoid the mistakes of the past. But that does not mean that there is a decrease in the provision of loans, particularly for credit-worthy loaners.

Regarding the Bank of Cyprus, the press release says: “We have provided since the crisis began €1 million in fresh loans, a fact which has increased the Bank’s market share from 37% to 42%. The loans we have provided this year to households and small to medium-sized enterprises(SME) have more than doubled compared to the same period in 2015.”

In addition, the Bank gave €200 million to 650 SMEs, in cooperation with the European Investment Bank.

Beyond fresh loans, the bank has also supported its current customers through a series of actions. These include attracting €350 million in foreign investment, along with decreases in interest rates. The benefits for customers from the decreased interest rates are valued at €150 million. Additional benefits are the €7.5 billion loan restructurings.

The increasing quality and pace of the restructurings is reflected in the €2.6 billion restructurings conducted in the firsthalf of 2016.

Deleveraging of households and business was conducted with the voluntary immovable property exchange programme, with which customers that chose the bank’s proposed option decreased their debt obligations by €1 billion.

In any case, the Bank adds, it aims to increase provision of loans, including housing loans for households, with a large collection of new products with beneficial terms that have already been announced.

These products are aimed predominantly towards young individuals, young couples, students, and SMEs.

Source: InCyprus

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