Do you see any signs of a derailment of the Cypriot programme? What might be the effects on the banking system? Cyprus has a remarkable track record in implementing the conditionality of the programme. One of the key objectives of the programme is to reduce the high level of non-performing loans and restructure the excessive indebtedness of the private sector.
This is a key condition for the banking system to be in a position to finance economic growth and job creation. In this respect, a swift adoption of the insolvency framework and application of the foreclosure framework are not only key elements to guarantee compliance of Cyprus with the programme, but also essential to support the economic recovery.