Financial law

The governor of the Central Bank of Cyprus has dispatched crucial correspondence to banks and credit repurchase companies shedding light on the strategy for restructuring nonperforming loans (NPLs) and navigating credit risk management.

Reducing the ratio of debt-to-gross domestic product at the fastest rate in Europe, achieving higher positions in the rating agencies' scales and further reducing the cost of servicing the country's borrowing, are the three main objectives set by the financial staff for the crucial issue of managing the Greek debt.

A new boost is expected for the out-of-court mechanism for debt settlement, after the improvement regulations incorporated in the new law passed on Tuesday by Parliament.

An amendment provides that creditors are given the possibility to request an advance payment of up to 10% of the debt, as shown by the calculation tool of the extrajudicial mechanism.

The Public Debt Management Agency announced it will auction 52-week treasury bills on Wednesday to the amount of 375 million euros, in book entry form, with maturity on December 6, 2024.

The settlement date is this Friday.

Bulgaria has achieved a significant milestone in its fiscal management by successfully raising an external debt of 2.3 billion euros through two separate issues on international markets. This strategic financial move not only indicates Bulgaria's solid standing in the global financial landscape but also plays a pivotal role in covering old debts and managing the national deficit.

Individuals and businesses who are due a tax rebate but owe money to the Unified Social Security Fund (EFKA) will see their rebates offset with their debts, may no longer be able to submit their statements to EFKA online and may be prosecuted. 

All these moves are part of the social security debt collection center's plan to crack down on debt and prevent its further accumulation. 

Social security agency EFKA is allowing non-salaried professionals and businesses affected by wildfires not to pay their social security contributions for six months and no compound interest will be charged once they resume payments. 

The government is preparing interventions in the housing credit sector for this fall, with National Economy & Finance Minister Kostis Hatzidakis vowing that the government will continue to support vulnerable households. 

The "big fish," however, he said, "are not vulnerable households but those who pretend to be poor." 

Private debt in Greece remains stable and lies below the European Union average, Deputy Finance Minister Haris Theocharis said in Parliament on Friday.

Creditor banks are searching for a new buyer for the scheme created under the name Avramar, specifically for the fish farming company's activities in Greece, five years after the sale of Selonda and Nireus to the Andromeda aquaculture group.