CITR Cyprus Director and Cyprus Country Coordinator of INSOL Europe, Mrs. Irina Misca, pointed out the importance of strengthening the local insolvency framework as a measure of economic recovery, during her speech at the 10th Nicosia Economic Congress. Addressing a wide audience of senior executives from the Cyprus financial sector and state officials, Mrs. Misca presented how insolvency tools have been used successfully in other countries to overcome financial crisis, explaining that at the moment the local Insolvency Framework, as it is currently regulated in Cyprus, always stands as the last resort for both creditors and debtors in distress.
The crisis that resulted from the Covid-19 pandemic comes on top of an already existing crisis, as Cyprus was still struggling to reduce the NPLs from banks balance sheet. An effective regime of corporate insolvency in Cyprus will contribute to the improvement of the investment climate in the country, will facilitate the distinction between companies that are capable of rescue and those that are not, and will contribute to the efforts regarding the reduction of the level of non-performing loans.
“In a healthy business environment, insolvency acts as a protection tool for all parties involved in the process: debtors, creditors, employees, shareholders. The more affected the economy of a country is, the more insolvency tools should be used, given that there is a proper regulation system in place to ensure their effectiveness. Therefore, it is important, now more than ever, to adopt a rescue culture, implementing the European Directive on Preventive Restructuring, in order to enable long-term economic recovery”, noted Mrs. Misca.
For all solutions in distress, it is of paramount importance that highly skilled and qualified professionals administer the Pre-Insolvency, Insolvency & Restructuring procedures. With over 20 years of experience in distress and crisis management, CITR, part of Impetum Group, supports companies and creditors in distress, offering integrated and customized programmes aiming to find the best solution for all stakeholders involved. The company’s multidisciplinary team leverages its local and international expertise to provide restructuring services, insolvency services & NPL advice, as well as sales & property management in distress.
INSOL Europe is the European association of insolvency practitioners, insolvency lawyers and restructuring professionals, which supports European business recovery, turnaround, and insolvency issues, by facilitating the exchange of information and ideas amongst its members, relevant European and international bodies who are affected by those procedures.