Cyprus will present its plans to establish an asset management company and the accompanying Estia scheme for consideration by the European Commission's Directorate-General for Competition.
As reported by Cyprus Mail referring to anonymous sources in the government, these plans were announced to the head of the supervisory board of the European Central Bank Daniel Nui during her visit to Cyprus 14 February, and their consideration in Brussels is to be held next week.
Any initiatives of national governments concerning the support of banking institutions should necessarily receive the approval of the European Commission, in accordance with the European legislation on the provision of state aid.
According to the ECB, Cyprus is one of the leaders of the EU in terms of the share of non-performing debt in banks of the country, which as of October 2017 was 44,1%.
As a result of her visit to Cyprus, Nui called for intensification of work to reduce the level of toxic credits. "The efforts made by Cypriot banks over the past few years are commendable, and indeed, some progress has been made. However, additional persistent efforts are required to achieve an even greater reduction in unserved debt, "the head of the supervisory board said.