Capital Intelligence has revised upwards the sovereign ratings for Cyprus due to a faster than projected decline in general government debt, consistent primary fiscal surpluses, proactive debt management, progress in clearing up non-performing loans in the banking system, and declining government contingent liabilities from the banking sector.
Capital Intelligence Ratings has revised its long-term foreign currency rating outlook for the Republic of Cyprus from stable to positive. The government’s debt has been reduced due to consistent primary fiscal surpluses and proactive debt management.
A portfolio of performing and current restructured loans with a total gross book value of €58.4 million was transferred to Bank of Cyprus from Kedipes, a state-owned asset management company, as of December 31, 2022. This transfer is part of Bank of Cyprus’s strategy to increase its loan portfolio and market share while aiming to better serve its customers and reward its shareholders.