Cyprus presents plan on asset management company

Cyprus has presented a plan to European banking authorities to set a state asset management company in a bid to offload red loans weighing on the country's financial system.

According to state owned Cyprus News Agency, the plan was presented to Daniele Nouy, chair of the European Central Bank's Single Supervisory Board, during trip to the island state earlier this month.

Cyprus is now planning to present the idea competitions officials in Brussels given that any move to support to banks must be cleared by regulators.

With non performing loans at 44 percent, Cyprus has the second highest bad loan ratio in Europe after Greece.