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Institute of International Finance Discusses Cypriot Foreclosure Law

Concerning Cyprus, The Institute of International Finance (IIF) considers the application of the foreclose mandate as "critical" for the nation's economy, while it is also "subject to heightened uncertainty", as reported by Parikiaki.

The IFF stated in the "Cyprus: Dealing with rising NPLs" financial study that, "after solid performance in the first year under Cyprus' rescue program, strong political resistance has emerged against the implementation of the agreed strategy for dealing with the high NPLs".

The Institute added, "A compromise on a revised draft foreclosure law was reached with the Troika, entailing an appropriate balance of the rights of both borrowers and lenders...enactment of the foreclosure law is a prior action for the completion of the fifth program review, but it is subject to heightened uncertainty".

The IFF further commented, "Adoption and effective implementation of the law is critical for the resumption of bank credit expansion and the restoration of output and employment growth".