SPEAKING to the Cyprus News Agency, the honorary president of the Cyprus chapter of the International Real Estate Federation (FIABCI) said that the financial crisis has shaken the confidence of potential overseas investors.
He said that property sales over the past two years were already very low and that although people from Cyprus and other EU member states are interested in buying, borrowing money is virtually impossible.
Mr Lemonari added that those who were putting aside money to buy property had seen their savings held at the Laiki and Bank of Cyprus slashed by the haircut imposed on the banks.
Lawyers are also worried as to how the haircut will impact their clients. Lawyers deposit proceeds from the sale of property and money received to purchase property into ‘client accounts’ to keep their customer’s money, which they hold in trust, separate from their own.
How these client accounts will be affected by the financial measures imposed by the government remain unclear. The Central Bank’s press release says that amounts “are ‘frozen’ until the presentation of appropriate evidence to the respective banks for the beneficiaries of the account holder.”