13 January 2014 17:51

Businesses from the tourist and hotel industries are in search of investors to sell their assets in order to repay their loans to the Bank of Cyprus, it has emerged.
Bank sources have reported that the recent performance of the tourism sector has increased chances of attracting foreign buyers, which explains the recent selling of hotel shares by owners, while even robust hotel groups are caving under the current circumstances.
The deterioration of BoC's lending portfolio at the end of 2013 has increased pressure on big borrowers, while the bank is currently completing procedures to appoint an administrator for the assets of the Libra Group which is said to owe €100 million in a non-performing loan.
A list of 22 businesses owing a total of €6 billion to the Bank of Cyprus are set to follow, starting with businesses that have been overcharged for a while, while others have started to repay the interest on millions worth of loans in order to prevent the repossession of their guarantees.
Meanwhile, the Troika of international lenders is monitoring the situation regarding non-performing loans (NPLs) and is expected to discuss the issue during its scheduled visit to the island on January 28.
A European Commission report stated that the assets of the 22 big borrowers will be repossessed unless their loans become serviceable, while the indicator for NPLs in 2013 is expected to reach 50%.
 


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