The chairman of the European Stability Mechanism Klaus Regling, a fund that finances bailouts in the euro area, said that Cyprus needs to go harder on non-performing loans.
Cypriot lenders, whose total bad loans accounts for rough half of their loan portfolio, also need to reduce the size of their branch network in order to improve their profitability, said Regling who was addressing delegates at a conference in Nicosia recently.
Cyprus received more than €6.2bn in financing from the ESM to cover its fiscal deficit and recapitalise the cooperative banking sector over the 2013-2016 period.
Source: Cyprus Mail
