FOLLOWING the practice of many banks around the world, the Bank of Cyprus plans to launch a website in the next two or three weeks where it will advertise all the property that it owns and wishes to sell.
Needless to say the Cyprus Real Estate Agents Association has objected as it feels its members should be involved in the sell-off/fire sale.
According to a Cyprus Daily source: “Calling for proposals is a sign of transparency and proper sales procedure. Association members who had a meeting with bank officers were told that this is regular practice by lenders all over the world.
“Hellenic Bank (in Cyprus) already follows this practice…Bank of Cyprus has now some 600-700 properties for sale here and abroad, especially in London.
They are mostly branches or other assets of former Laiki Bank.”
However, the same source rebuffed any suggestion that the new website was connected to possible future home repossessions from owners in Cyprus who cannot repay their loans.
“Repossessions are not the lender’s main objective, this is not what the management aims at, far from it,” said the source.
However, it is generally accepted that the larger developers whose bad loans exceed €6 billion will suffer repossessions at some time in the future.
The Bank of Cyprus desperately needs as much revenue as possible and cannot afford the luxury of hanging on to assets it no longer needs.