Cyprus Property News magazine for overseas buyers & real estate investors

Wednesday 15th July 2020
Home News Construction loans boom despite Banks' measures

Construction loans boom despite Banks’ measures

Despite measures taken by the Central Bank of Cyprus earlier in the year, loan growth hit a 10-year high in December 2007.

According to the Central Bank’s figures, loans made by the commercial banks rocketed 36.4% in December following a 34.2% rise in November and a 33.3% rise in October. By December 2007, the banks loan portfolios had increased to €27.32 billion.

The construction sector contributed heavily to the increase in loan portfolios. In December, these grew by 40.8% to €5.29 billion.

The Central Bank expressed its concern on the fast growth of loans that boost consumption and inflation. To moderate it, it cut the lending ceiling for the second property from 70% to 60%.

However in December 2007, the Central Bank unexpectedly cut the domestic rates for existing loans to 4%, bringing the cost of borrowing down prior to Cyprus’ adoption of the Euro on 1st January 2008.



EUR - Euro Member Countries


COVID-19 hits new homes in Cyprus

Permits for the construction of new homes in Cyprus fell by more than a half during April; the second month during which the COVID-19 containment measures continued to apply.

Cyprus’ largest ever housing project will help low-income families

Limassol municipality and the Land Development Corporation (KOAG) reached an official agreement on Thursday regarding the establishment of the largest housing project ever undertaken in Cyprus, worth €100 million.

Corrupt lawyers continue to plunder estates

Corrupt lawyersin Cyprus continue to plunder the estates of their deceased clients by calculating their fees for administering estates on the Cyprus Bar Association's 'Minimum Fee Regulations', which were abolished in 2018

Cyprus house price index up 2.5 per cent

The Cyprus house price index rose by an average of 2.5 per cent in the first quarter of 2020 compared to the previous quarter according to official figures from the Cyprus Statistical Service (CYSTAT)