Credit

 Agency chose not to revise Greece’s credit rating, retaining the country’s ‘selective default’ status

By Sotiris Nikas

Moody’s rating agency may not have changed its rating for Greece on Friday, but the markets did not appear inclined to wait for its announcement to display their own confidence in the country’s economy.

Banks will have to change nearly 3 million loan agreement if Bulgarian lawmakers adopt backdated amendments to the Consumer Credit Act.

Independent MP Rumen Yonchev will propose an amendment binding banks to prepare new loan agreements within three months. Customers will be able to choose between the new and the old contract conditions, Darik news informs.

Cypriot lawmakers must make it easier for banks to seize property when borrowers default to tackle the issue of bad loans, the country’s most pressing issue, central bank governor Panicos Demetriades said.

By Nikos Roussanoglou

Banks will no longer charge fees for the utilization and management of consumer loans, after Bulgarian lawmakers adopted on second reading amendments to the Consumer Credit Act.

All bank charges except those for handling credits to be dropped is one of the proposed changes in the new Consumer Credit Act, Bulgaria's socialist MP Georgi Kadiev told NovaTV.

According to the MP from Bulgaria's Socialist Party, the new act which will be revised at second reading, stipulates the advance paying off of liabilities, too.

The Moody's ratings agency has raised its outlook for Cyprus to positive, while confirming the island's Caa3 credit rating.

By Evgenia Tzortzi and Dimitra Manifava

The new code of practice for the handling of bad loans, which the Bank of Greece has published for consultation, provides for borrowers who cannot repay loans secured against their home to be able to remain at their property by renting it after transferring the ownership to the bank.

Greek bond yields dipped on Friday after Standard & Poor's said it could raise Greece's credit ratings if GDP growth were to pick up more substantially, after keeping them deep in junk territory with a stable outlook.

Fitch Ratings has affirmed the Bulgarian Energy Holding's long-term foreign currency issuer default rating (IDR) and long-term local currency IDR at 'BB+' with a stable outlook.

According to a statement of the Agency, BEH's EUR 500 M bond has been affirmed at foreign currency senior unsecured rating 'BB+'.