The European Commission notes that despite the recent improvement, Cyprus' vulnerabilities, which are mostly due to long-lasting stock-imbalances, continue to be significant.
The high level of non-performing loans (NPLs) remain a problem for the Cyprus banking sector despite the strong growth boosting the island's economy says the IMF representative in Cyprus.
Following the second post-programme surveillance mission to Cyprus, the European Commission and the European Central Bank reports that NPLs remain "very high" and that "reform momentum has weakened noticeably."
Non-performing loans (NPLs) in the Cypriot financial system stood at 47.8 per cent of total loans at the end of September 2015, according to data released by the Central Bank of Cyprus.
Latest figures from the Cyprus Central Bank reveal that non-performing loans (NPLs) continue to remain high despite the implementation of the foreclosures and insolvency laws three months ago.
Ernst & Young Cyprus Ltd (EY) has published the second edition of its Real Estate Dynamics Report, which contains an analysis of recent developments in the Cyprus construction and property sectors.
Although the troika's third assessment of the Cyprus economic adjustment programme is expected to be positive, delinquent loans remain a permanent danger looming over the banks.
Against a backdrop of shattered consumer and investor confidence, soaring unemployment, and a credit crunch, the Cypriot economy will remain in recession until 2017.
It is unlikely that the existing stock of new properties in the oversupplied markets of Paphos, Larnaca and the Famagusta/Paralimni area will be sold in the near future as they were built for "buy-to-flip" investors and are unsuitable for permanent living.
The Cyprus overseas property market remained steady last month with sales during the first eleven months of this year maintaining their 8 percent increase on the numbers sold during the first eleven months of 2009.
