CRIMINAL proceedings have been initiated against a property developer in Paphos for the non-payment of VAT and the Court will soon be making a decision whether to send him to prison.
Meanwhile, a bank has moved an application to appoint receivers and liquidators to recover the company’s debts of approximately €3 million. Those who purchased property from the company oppose this move as they believe that the company has sufficient assets to meet its debts without them having to lose their homes.
A group of around forty Cypriot and foreign buyers are involved in this tragic situation. Some of the properties they bought have not been completed due to the financial problems encountered by the developer.
Buyers are blaming the bank for their predicament. In 2006, because of the economic situation, the bank refused to make a further loan to the property developer that may have enabled him to complete the project. However, the bank continued to grant mortgages to those buying property on the development in spite of the fact that it knew the developer was experiencing financial difficulties.