Sunday, May 14, 2017

Non performing loans dropping in Cyprus

Cyprus Business Mail:

Non-performing loans in Cyprus’s banking system continued to be around half of total loans over the past years. In absolute numbers they fell by €3.5bn in two years but as a percentage of economic output, the drop was more spectacular, an analysis of Central Bank of Cyprus (CBC) and Cystat data shows.


“The situation that we have now in the economy is not perfect but it is improving and one can indeed argue that we are entering a virtuous circle,” said Andreas Assiotis, group economist at Hellenic Bank, in a telephone interview on Friday.

A group of leading indicators, including employment, consumption and other data, are suggesting that Cystat will announce on Tuesday that annual economic growth in the first quarter increased further compared to the 3 per cent of the fourth quarter of 2016, Assiotis said. “What is also important is that growth is not the result of increased government spending,” he continued. “It is the outcome of an increase in investment and consumption”.

This is exactly what I have been forecasting for over a year. The market and media are now catching up with my analysis. In addition, the markets are now starting to revalue Bank of Cyprus stock. It is evident that the stock is in a new uptrend. I will be adding to my position next week.

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