Law implementation and hiring of expertise to help slash NPLs

Greece has a lot to learn from Cyprus when it comes to tackling nonperforming loans, as Greek banks face a daunting task in slashing their bad-loan stock by 40 billion euros by the end of 2019, according to their pledge to the European Central Bank.

With three banks already having sold NPL portfolios to foreign funds, and online auctions gathering pace, attention in Greece is shifting to the implementation of legislation regarding out-of-court settlements and the protection of main residences, and to the way banks can make the most of collateral from insolvent debtors.

In Cyprus, banks, the state and judicial authorities have been particularly active in efforts to cut NPLs, with the island's biggest lender Bank of Cyprus reporting that bad loans have been reduced by over 40 percent in less than three years, according to its director of restructuring and recoveries, Nick...