Bank of Cyprus gives loans international makeover

Author: Lizzie Meager | Published: 3 May 2016
The Mediterranean island has struggled with a private debt problem since the crisis

The restructuring of Bank of Cyprus’s (BoC) loans with local enterprise the Leptos Group has brought the bank’s documentation in line with international standards.

The small Mediterranean island has endured a slow recovery since its 2012 financial crisis, which saw the closure of Laiki Bank, its second-biggest lender, and capital controls introduced for two years. 

While the economy is improving, it remains beleaguered by a non-performing loan (NPL) problem years after a group of supranational lenders including the European Central Bank and IMF resolved some of its banks in 2013. In July 2015 it had the highest level of NPLs as a percentage of total loans in the world at 44.8%, and the Central Bank of Cyprus has since set itself targets to reduce its private debt exposure to mitigate the issue.

“The bank’s...