telCall on 00357 99115897 8AM to 6PM
Property in Cyprus 
недвижимость на кипре
CN

Cyprus Property News

My Cyprus Resales

Cyprus property news.

We give sharp, insightful comments on issues affecting the Cypriot property market. No nonsense reflection of current events and market trends as well as news on property tax and general legalization changes in Cyprus.

Cyprus lifestyle news.

With everything from the status of road work in Paphos to the opening of new shops and general economic news – you will find Cyprus lifestyle news a good read.

Our twitter page.

When it comes to social media we really do prefer twitter. We try to make our tweets not just a list of what we have for sale, but more a reflection of Cyprus life with a fun and sometimes ironic twist. FOLLOW US NOW!

Keep up to DateRegister Today

Cyprus Property News

Bank of Cyprus holds key to recovery in Cypriot property market.

Date: 20/03/14

Even before the events of March 2013 when Cyprus was bailed out (or was it bailed-in?) by the Troika of international lenders the country’s biggest lenders had became… well, closed to new lending.


 Two largest banks on the island, Bank of Cyprus and Laiki Bank, sharing over 50 % of the market, had in all essence frozen all lending even to the very best of clients. Lending became a rare exception – only in limited cases or when vendors agreed to fund the mortgage itself by leaving the proceeds of a sale in a long term account with the bank. The only other way to get a loan from the banks was to buy an indebted developers property and allow the bank to do some “write offs” on the bottom line.
This can hardly be classed as a functional banking system by anybody’s standards. But this has been a reality since the beginning of 2012 (our last mortgage was secured in December 2011).  Acute lack of liquidity, forcing banks to act not really like banks, has had a sustained and downward pressure on property prices. Although the vast majority of our buyers have always been “cash buyers” now a cash buyer became in all essence the only buyer.

It’s been a whole year after the Cypriot rescue and the Bank of Cyprus still remains a non-Bank in the mortgage market. Although their reckless lending in the past had caused them to pull back, they have simply gone too far. Potential buyers who would bring profit to the bank are forced to delay a purchase or simply buy what they can with available cash.  

As a successful example to battle the negative trends on the market we may look at the UK government. They have done much to stimulate the housing market with varicose help to buy schemes. Low interest rates and even lower deposits have brought great results. It’s clear that prudent lending by BoC to qualified clients must return not only for the long term health of the property market but for the bank itself. No bank can exist without lending, this is after all how they make money. As the main player Bank Of Cyprus  lead will be followed by rival banks desperate not to fall behind the market leader.

<< Back to News
 
 
Get in touch Close

Innovative mobile solutions for your Smartphone

phones
Innovative mobile solutions for your Smartphone

iPhone / Ipad
Simply tap the + icon at the bottom of your screen then 'Add to Home Screen'

Android
Install the app by clicking here. You will then be able to access the application from your application screen.
Get in touch Close
7, Tombs Of the Kings Ave,
Paphos, Cyprus

+357 99115897

info@cyprusresaleproperties.com