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

Debt relief and foreclosures

foreclosuresSPEAKING with the Cyprus News Agency earlier today, head of the Cyprus Insolvency Service Giorgos Karotsakis said that the Service had received four applications since details of the scheme were published on 7th August.

Mr Karotsakis expects that many more applications will be submitted soon as private insolvency practitioners have advised the Service that they are preparing applications for the scheme.

The scheme enables individuals with assets below €1,000 and a monthly income of less than €2,000 to apply to the court, via the Insolvency Service, for an “order of debt relief” of up to €25,000 – providing they meet certain criteria.

Mr Karotsakis also said that the Service had received two applications from borrowers who had authorised two insolvency practitioners to draft personal repayment plans.

Meanwhile is seems likely that the Bank of Cyprus will be the first bank to initiate foreclosure proceedings on properties pledged as collateral for around €85 million worth of non-performing loans.

Speaking to the Cyprus Mail by phone an anonymous source was reported as saying: “There are about 25 cases, all of them dating back to 2013 or earlier, for which a court decision has already been issued. In five days, bailiffs will start notifying both borrowers as well as guarantors that the foreclosure procedure will be initiated.”

The properties include “commercial properties and land”; no primary residences are affected.

The source added that the foreclosures are expected to take place at the start of September.