Cyprus has the highest mortgage interest rates in the euro area and the government is not satisfied with the situation. Earlier today the Finance Minister, Charilaos Stavrakis, said that he was confident that the government’s latest measures to support the island’s economy will push interest rates down.
“The high rates must not be connected with the liquidity or not in the banking system. The banks’ liquidity has been strengthened since the latest measures for the support of the island’s economy. The government has secured a rate below 2% for the sum of €50 million in a closed auction. This shows that liquidity is at very good levels“, the Minister said, stressing that the deposits of the state exceed €1.1 billion.
The pound’s slide has stretched the finances of many British property buyers. And this, together with the high mortgage interest rates in Cyprus, means that some of them are struggling to keep up their mortgage repayments.