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Bank of Cyprus to foreclose on ten properties

Bank of Cyprus to foreclose on ten propertiesBANK of Cyprus, the island’s largest lender, said that it will foreclose ten properties worth over €2.3m, which will test for the first time the new legislative framework on foreclosures.

The lender, which placed advertisements in the daily press including the Cyprus Mail, said that it will first foreclose six properties in Paphos, on June 23 before proceeding with another four in Nicosia on the following day.

The properties the bank plans to foreclose at “reserve sale prices,” the minimum price at which the lender will accept a bid at the auctions, comprise demolished or derelict houses.

The Cyprus Business Mail understands that the affected properties are part of a group of 25 cases representing bad loans worth €85m dating back to 2013 or earlier.

The advertised properties include a 5,263 square metres field storage in Gialia with a reserve price of €438,000, three plots in Mesogi Paphos with a total area of 587 square metres, 576 square metres and 520 square metres with a respective reserve price of €80,000, €78,400 and €71.600, a demolished basement and ground floor house on a 1,485 square metre plot in Paphos with a reserve price of €736,400, a derelict house with yard with an area of 186 square metres and a demolished house with a cistern with an area of 1,005 square metres with a reserve price of €186,600 for both also in Paphos.

The Bank also intends to foreclose a 619 square metres plot in Agios Dometios, Nicosia, at a reserve price of €398,000 and three fields in Paliometocho, one with an area of 6,355 square metres, and second with an area of 3,345 square metres and another with an area of 4,840 square metres at a minimum price of €30,160, €16,800 and €300,800 respectively.

As part of its 2013 bailout agreement, Cyprus had to modernise its foreclosure legislation in order combat strategic defaults and so reduce non-performing loans.