Deadline on foreclosures in Cyprus is looming
Cyprus is nearing the end of the suspension of divestments of primary residences worth up to 350,000 euros, but a solution remains elusive regarding open funds tied to the divestment framework.
Meanwhile, credit buyback companies, feeling the pressure of time, are devising aggressive resolution strategies to ensure returns on their investments in the secondary loan market.
In the coming days, we can expect credit buyout companies to initiate real estate offers, massive loan write-offs (with borrower cooperation) and other innovative approaches. They are even considering sharing part of their profit with borrowers due to their favorable acquisition of problematic loan portfolios from banks in Cyprus.
True, the story so far indicates significant progress. Cyprus banks have been diligently shedding nonperforming loans, primarily to American investment funds, resulting in a remarkable reduction of problem loans on their balance sheets.
From December 31, 2017 to June 30, 2023 a total decrease of 18.5 billion, or 89.7%, has been achieved, leaving problem loans limited to €2.11 billion out of a total of €24.4 billion granted.
