- Cyprus Property News Magazine - http://www.news.cyprus-property-buyers.com -

Central Bank issues stark warning on foreclosures

central bank of cyprusACCORDING to reports, the Central Bank of Cyprus has warned banks to change their attitude towards borrowers and avoid foreclosing on their primary residences in cases where they are unable to maintain their mortgage repayments.

The Central Bank has also called on banks to help borrowers rework their mortgages and even went as far as giving notice that there could be a haircut on non-performing loans in efforts to facilitate their repayment.

A special team of Central Bank officials has been set up to check the practice of the Bank of Cyprus before carrying out similar checks at other lenders.

A source at the Central Bank said that the thirty largest borrowers have bank debts totalling €6 billion and that priority will be given to the seizure and sale of their property.