Troika begins fifth review of bailed-out Cyprus economy

NICOSIA, July 15 (AFP): A delegation from the troika of international lenders Tuesday began its fifth assessment of Cyprus's economy and troubled banking system, focusing on the threat of bad loans.
Some 45 per cent of all loans at Cypriot banks are classified as non-performing -- 27.1 billion euros from total lending of 60 billion euros, according to Cyprus Central Bank figures.
Non-performing loans (NPLs) represent 43 per cent of bank loans and 51.7 per cent of loans in cooperative banking.
The International Monetary Fund said earlier this month that the level of NPLs in Cyprus is the highest in Europe at almost 140 per cent of GDP, curbing credit to the economy and stunting growth.
Cyprus has successfully completed four similar reviews from the troika -- the European Commission, European Central Bank and International Monetary Fund.
The current week-long examination will focus on bank reform, a proposed national health scheme and how to deal with NPLs and home repossessions.