A total of 80% of Swiss Franc loans are non-performing, according to the head of Cyprus Central Bank's Supervision Division, Yiangos Demetriou. The central bank has been forced to take over a number of failed banks in recent years, including Laiki Bank, which was taken into state ownership by the Greek government last year. Household loans make up the bulk of the non-performing loans, according to Demetriou, who has called for more pressure on the banks to "improve their schemes and attitudes" towards the troubled household borrowers. MPs have also expressed alarm at the slow pace of the restructuring of household loans and have suggested laws forcing banks to be more generous in reaching settlements.
A total of 80% of Swiss Franc loans are non-performing, according to the head of Cyprus Central Bank's Supervision Division, Yiangos Demetriou. The issue with loans denominated in Swiss Franc came to light when the exchange rate in relation to the euro increased by 40% thereby trapping borrowers who concluded those loans. Household loans make up the bulk of the non-performing loans, according to Demetriou, who has called for more pressure on the banks to "improve their schemes and attitudes" towards the troubled household borrowers. MPs have also expressed alarm at the slow pace of the restructuring of household loans and have suggested laws forcing banks to be more generous in reaching settlements.