Amendments to foreclosure framework hamper banks’ efforts to reduce problem loans, Moody’s warns

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Moody’s rating agency warned on Thursday that the amendments approved by the Parliament of Cyprus to the legal framework governing foreclosures were “credit negative”, as it expected that they would “hamper banks’ efforts to reduce problem loans”.The credit rating agency said that the amendments, approved last week, “will likely lengthen the foreclosure process”. “The amendments are credit negative for Cypriot banks because they hamper the banks` organic efforts to reduce large stocks of nonperforming exposures (NPEs), which were 30% of gross …

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