THE EUROPEAN COMMISSION has sent a warning regarding the course of debt restructuring in the Cypriot banking system, saying that efforts to restructure non-performing exposures have not yet shown tangible results.
Financial institutions have stepped up their debt restructuring efforts, but the results have been mixed so far, the Commission report said, adding that the share of restructured loans increased during 2015.
However, the ratio of non-performing restructured loans to total loans increased as well, suggesting that many restructuring operations are not sustainable and are non-performing, the Commission underlined.
In absolute terms, the rise in restructured loans was almost fully matched by that of non-performing restructured loans.
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