Summary of the Recommendation on Measures by the Central Bank of Cyprus

Yesterday, March 18^th 2020, the Central Bank of Cyprus announced measures to further support both Businesses and Households.

In Summary:

1. Additional release of liquidity was announced so that Banks can show flexibility in respect to existing company and household loans

• The release of a total of Euro 1.4bln is carried out so that banks can transfer the benefit to the real economy in the form of favourable loan restructuring to companies and households

2. Easier and immediate access to short-term loans to companies and households in order to overcome current difficulties

-The Central Bank of Cyprus relaxes the criteria for approval of new loans and other credit facilities in order to help affected companies and households with immediate access to cash liquidity to cover their current needs.

3. Favourable short-term Loan Restructuring for affected clients

• The Central bank recommends that banks show the necessary flexibility to affected companies and households and proceed with current loan restructuring and other credit facilities. Loan restructuring could include the suspension of capital or interest or both for a period of 9 months according to each bank’s policy and the economic situation of each bank client

4. More favourable Loans and Bank Charges

• The Central Bank recommends to banks that the supply of new loans on point 2 be carried out with favourable interest.
• The Central Bank recommends that new loans and credit facilities as per point 2 carry zero charges.
• The Central Bank recommends that the interest of the restructured loans  in point 3 be favourable.

5. The Central Bank of Cyprus called on Credit Acquiring Companies to provide short-term restructurings to affected borrowers affected by the government measures to contain the spread of coronavirus.

• Credit Acquiring Companies  may derogate from the requirement of detailed restructuring evaluation and approval procedures in the case of a short-term restructuring request for a period of 9 months. Restructuring may include suspension of capital and / or interest. The aim is to provide the affected businesses and households with adequate liquidity so that they can cope with the difficult economic conditions they are facing

The full announcement can be found in Greek on the following link:

https://www.centralbank.cy/el//announcements/%CE%B4%CE%AD%CF%83%CE%BC%CE%B7-%CE%BC%CE%AD%CF%84%CF%81%CF%89%CE%BD-%CE%BA%CF%84%CE%BA-%CE%B3%CE%B9%CE%B1-%CE%B1%CE%BD%CF%84%CE%B9%CE%BC%CE%B5%CF%84%CF%8E%CF%80%CE%B9%CF%83%CE%B7-%CF%83%CF%85%CE%BD%CE%B5%CF%80%CE%B5%CE%B9%CF%8E%CE%BD-%CF%84%CE%BF%CF%85-covid-19-%CE%B7%CE%BC%CE%B5%CF%81%CE%BF%CE%BC%CE%B7%CE%BD%CE%AF%CE%B1-18-03-2020