Cyprus Property Forum for Buyers, Sellers & Investors

When the troika talks started approx half year ago NPL(Non Performance Loans) definition change for banks was heavily discussed, alongs with laws changes to allow banks to seize collateral properties from non performant loans much more easily. However when the agreement details were published later, nothing was ever mentioned regarding that. Any clues what happens in that direction? It should have great impact on the market if banks start taking properties from people who fail to repay their loans and put them for sale.

Hi dmitry and welcome to the forum.

I guess we'll all have to wait until the terms for the bailout have been agreed. The new government seems to be moving fast, so hopefully we'll all have answers to our many questions soon.

The Central Bank had to issue a new directive to the banks on the subject (below), but I haven't seen or heard of anything:

"Non-performing loans are threatening bank profitability and need to be properly monitored and managed in order to safeguard the banks' capital buffers. The Central Bank of Cyprus’ guidance on the classification of loans as non-performing will be amended to include all loans past due by more than 90 days.

This amendment will be introduced by [31 December 2012]. The time series for non-performing loans will be published including historical observations reaching back as far as possible."

Regards,