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Main Cypriot Banks close doors to mortgages as Troika discussions continue.

Date: 05/08/12

The two biggest banks in Cyprus Marfin Laiki Bank and Bank Of Cyprus with a combined market share of almost 50% have closed their doors to any lending ...

While the “Troika” consisting of the IMF, European Central Bank and the European Union are going over the accounts of both the banks and the government main Cypriot banks have stopped accepting any new housing loan applications.

As rating agency Standard and Poor’s downgrades the Cypriot debt further into Junk pressure is building on the current government and especially on the hapless leader President Christofias who really does seem to possess the polar powers to King Midas…

Luckily every cloud has a silver lining and so does this one. After the recapitalization, expected by the second half of September 2012, applications for mortgages will be accepted again and also at a less punishing rate than before. The estimated interest rate should be at around 5% per annum. It will of course go without saying that the “new“ Cypriot banks will be less eager to lend to developers and clients with uncertain credit outlook.

As usual Cyprus Resales bring you the “real” news first and tell you exactly how it is without any sweeteners. We are in the business of selling property not just taking reservations.

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