Central Bank to finalise additional measures for COVID-19

Constantinos Herodotou, Governor of the Central Bank of Cyprus, pointed out the need for the banks to transmit the capital relief measures decided by the ECB to the real economy which is feeling the pressure from the coronavirus pandemic.

Herodotou held a teleconference with the executive chiefs of the Cypriot commercial banks and the Association of Cyprus Banks yesterday, to who he outlined the timeframe for the implementation of further measures being examined by the CBC.

These measures are additional to the €1.3 billion capital relief that emerged for the Cypriot systemic banks following the announcement of the Single Supervisory Mechanism.

Sources told CNA that the CBC is considering measures within its mandate and measures which require approval by the SSM. The measures are expected to be submitted within this week.

The banks are believed to agree that these measures should be transmitted to the real economy, businesses and households which faces pressures from the coronavirus pandemic.

Furthermore, the Central Bank Governor is in contacts with the SSM with regard to the measures falling under its competencies.

As CNA learned, the CBC seeks to obtain the SSM’s approval so that the flexible stance shown to borrowers by Cypriot banks will not affect their non-performing loans ratio.

The CBC therefore awaits the SSM’s response to take its decisions.

Source: Cyprus News Agency