articles | 13 January 2014

Developers want more time to pay banks

Foreclosing on large developers would not solve the liquidity problems faced by banks, but they are asking for time to settle their debts and continue to operate.

Speaking on behalf of the developers, Andreas Sandis said the country’s interests would not be served if there was a fire sale of real estate during a recession and while the construction sector was at its lowest ebb. Foreclosures would be catastrophic for the sector, he said, suggesting they could come to an arrangement with banks to pay an instalment and cover the interest to prevent seizures.

Interior Minister Socratis Hasikos said recently that €500m worth of foreign investments were made in Cyprus during the last eight months of 2013, primarily through the land-for-residency scheme, and particularly to non-EU nationals, such as Chinese and Russians. Developers have asked the government to provide additional incentives, and expedite procedures.

Sandis said the incentives could be more attractive to appeal to foreign investors who would bring their money to Cyprus. He said state departments must push for title deeds to be issued immediately so that property owners receive them as soon as the home is completed.

Source: Cyprus Mail

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