Nicosia - International lenders began a second inspection of Cyprus’ economy yesterday to assess progress in economic restructuring outlined in a €10 billion aid package brokered in March to avert the island's financial collapse.
The Troika - on island until November 8 - will focus on reforms in the damaged banking sector, now undergoing an extensive refit.
And John Hourican, a former RBS senior executive appointed CEO of Bank of Cyprus, said the issue of non-performing loans was among the most pressing issues at the bank.
"This is an unprecedented situation that has happened to Cyprus and to the Bank of Cyprus and I think that, while the problems are actually quite clear, the solutions are as of yet untested,” said Hourican.
Lenders will also look at privatisations of state-controlled enterprises which the three-year programme says could generate a cash boon of €1.4 billion.
In its first review held over the summer, lenders said Cyprus had made progress with overhauling its banking sector and pushing through structural reforms.
Cyprus has so far absorbed 47% of its loan.