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Cyprus mortgage scam

Cyprus mortgage scam

Jonathan Arnott MEP

ONCE again a question has been raised in the European Parliament relating to the many property issues in Cyprus. This one concerns what its author, Jonathan Arnott MEP, refers to as the ‘Cyprus mortgage scam’.

Question for written answer P-007065-14
to the Commission
Rule 130
Jonathan Arnott (EFDD)

Subject: Cyprus mortgage scam

Could the Commission please provide information on what action it intends to take, or has already taken, in relation to Cypriot banks selling mortgages dishonestly(1)?

(1) See ‘UK homeowners hope EC laws will help in case against Alpha Bank’, Cyprus Mail, 21.7.2013.

Answer given by Mr Katainen on behalf of the Commission

The pending national court procedures will show whether the Cypriot banks have infringed potential duties to inform about certain risks of a loan contract, in particular with regard to loans in a foreign currency.

The Commission is aware that real estate purchasers in Cyprus, for various reasons, did not always receive the property title immediately after payment of the purchase price. Since 2011 such purchase agreements can be registered with the Cypriot Land Registry in order to increase legal certainty for the purchaser.

In order to work towards a sustainable solution, the Cypriot authorities committed, as part of the economic adjustment programme, to establish a task force that will develop recommendations in order to address this issue.