Creditors to help Cyprus with foreclosures, bankruptcies
NICOSIA, Cyprus (AP) — Bailed-out Cyprus' international creditors say they will help the country implement insolvency and foreclosure laws which they see as essential for banks to deal with their massive burden of bad loans.
The International Monetary Fund, the European Commission and the European Central Bank say additional actions, such as new laws easing the sale of bank loans, will be important to help banks cope.
More than half of all loans in Cyprus are sour and creditors said in a statement Wednesday that tackling them will boost growth and help create jobs.
The creditors also urged Cypriot authorities to continue with public sector reforms and the sale of state-owned companies.
They said a regular review of the country's rescue program will be concluded once it receives IMF and EU approval.