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Friday 3rd July 2020
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Bank contracts for buying property

Bank contracts for purchasing property in CyprusTHE HOUSE of Representatives plenary unanimously voted on Friday two bills into law, thus transposing EU rules into national law on contracts with credit institutions for the purchase of property.

The new legislation regulates mortgages which relate to property which will be the residence of the consumer, as well as credit contracts without collateral for amounts over €75,000 for the renovation of property which is used as a residence.

The two bills had to be voted today, because as House President Demetris Syllouris explained addressing the plenary, the Republic of Cyprus is in danger of getting fined by the European Commission.

The new legislation creates a high level of consumer protection in the area of credit contracts by making it mandatory to review the credit capability of the consumer before offering the loan.

Such assessment should take into account factors such as the prospects the consumer has of keeping up with payments.

It also defines the licencing terms and preventative oversight relating to the establishment and monitoring of credit brokers and non-credit institutions.

The legislation passed by Parliament also stipulates the information which should be included in advertising relating to the provision of consumer loans for the purchase of property, the provision of pre-contractual information to the consumer, by way of a standardised European information bulletin, the calculation of the total annual charge rate for comparative purposes, loans in foreign currency, the right of early repayment of loans and penalties for not abiding with the legislation.

– Cyprus News Agency

5 COMMENTS

  1. It’s a start.

    Long way to go yet before I’d say the problems were adequately resolved mind.

    Slowly – they are waking up to the reality that E.U membership means a 2-way street – not just cherry picking the bits that look nice..

  2. Hopefully this means that the pressure is continuing to build on the banks – this seems to follow on from the Swiss Franc mortgages interim judgement and the Cyprus Consumer Protection ruling – and will force the banks to make reasonable and fair offers to those who have taken legal action against them and not waste more time before admitting to their unfair and inappropriate Swiss Franc mortgage practices.

    We continue to live in hope that the right thing will be done!

    Ed: You can find the CCPS rulings here on its website. If you do not read Greek use the Google Chrome web browser, which has a built-in translator. You’ll see several rulings involving various banks and property developers.

  3. Too little too late.

    Shopping in Tesco’s in Stoke-on Trent last year the lady on the till comments on my suntan. Yes I live in Cyprus I say. “Ho best of luck. I hear they steal your homes there.” She replies.

    The word is out, the reputation damaged, it will not recover in my lifetime. Maybe the Chinese or Russians haven’t heard yet? Problem is where do we move to next for new buyers?

  4. Well, I suppose this is better late than never. Pity that it was only done under threat of an EU fine.

  5. The words stable door, horse & bolted spring to mind when reading this article. Unless there is any retrospective redress for all those that are victims of the Swiss Franc Mortgage mis-selling scandal….. We live in hope.

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