Filenews 6 January 2022 - by Theano Thiopoulou
The Central Bank sees a possible new wave of non-performing loans, due to the ongoing consequences of the pandemic and its unpredictable course, and calls on banks to be alert and constantly alert, as well as to facilitate the processing of restructurings.
In the December Economic Bulletin, published yesterday, it is noted that "for this reason, the Central Bank has repeatedly drawn the attention of banks to the need for their operational readiness in the possible increase in applications for restructurings, as well as to the need to accelerate the volume, processing time and procedures of restructurings to avoid the increase of non-performing loans and to allow viable businesses to continue their work properly."
The data cited by the Central Bank show a significant increase in restructurings, due to the interventions made by the Supervisory Authority towards the banks. In the first half of 2021 they reached €1.4 billion, compared to €0.27 billion. in the corresponding half of 2020.
The return to 2019 levels
The challenge for tourism is great for the coming years, and especially for 2022, amid the uncertainty that prevails in relation to the course of the pandemic (e.g. mutations of the virus), according to the estimates of the Central Bank. Technocrats expect a gradual recovery in tourism, while it is not projected to return to 2019 levels before 2024, at the end of the Central forecast horizon.
As far as growth is concerned, the CFC's bulletin states that "the expected implementation of the investments and reforms included in the Recovery and Resilience Plan further enhance the prospects for GDP recovery. At the same time, the higher than usual levels of household savings observed are expected to be channelled towards real economic activity in the medium and long term."
Sources of uncertainty and supply chain
In its analysis, the Central Bank notes that "the positive outlook continues to be accompanied by a significant degree of uncertainty related to the unpredictable evolution of the pandemic, including the prevalence of the 'Omikron' mutation.
In particular, the disruptions in production and supply chains caused to international trade by the pandemic, as well as the continuous upward pressures on international commodity prices, mitigate growth prospects, as Cyprus' dependence on imports, especially on oil, is very high. In relation to inflation, the Central Bank states that "the increased inflationary pressures recorded, mainly due to the above factors, although expected to weaken by the end of 2022, however, while they last, however, have a blow to the purchasing power of both households and businesses, with negative potential consequences for consumer demand and investment".
THE LAW ON TOURIST AND TRAVEL OFFICES CHANGES
The Council of Ministers yesterday approved a bill amending the Tourism and Travel Offices and Tourist Guides Laws.
In a written statement, deputy government spokeswoman Niovi Parisinou says that the bill is mainly aimed at removing obstacles to the provision of tourism services by the Tourism and Travel Offices, by co-housing an licensed office with offices/companies that provide complementary or related activities such as travel, foreign exchange, shipping, car rental and transport insurance,
It also aims at simplifying the control and licensing procedures of the Tourist and Tourist Guide Offices and will contribute to the reduction of the administrative burden, by extending the validity of the office's operating license and a license to practice the profession of tourist guide from two years to three, while the reasons for the revocation of the license for the operation of the Office of Tourism and Travel are extended.
