articles | 17 December 2020

Banks extend freeze on home repossessions

The Cyprus Banks Association announced on Thursday they would extend the suspension of foreclosures concerning primary homes valued at up to €350,000 until the end of March.

According to a written statement by the association, its members “taking into account the prevailing economic conditions, are suspending the procedures for the sale of mortgaged real estate properties with a current value of up to €350,000 until the end of March 2021.”

The association clarified that the suspension does not apply to mortgaged properties related to credit facilities, for which a sale agreement has been reached.

This decision enters into force on Monday, December 21, 2020.

Finance Minister Constantinos Petrides said last week he had appealed to the bank association to apply targeted suspensions until the end of March next year.

Extending a suspension of foreclosures on primary residences tied to loans is not expected to affect the banks’ activities in the next few months as they had already made an informal pledge not to move against such cases. They do, however, start procedures when borrowers do not cooperate or are deemed unviable.

 Source: Cyprus Mail

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