Frustration for Cypriot home buyers
A wave of frustration and financial strain is sweeping over thousands of Cypriot homebuyers who find themselves burdened with paying off the debts of land developers, despite having fulfilled their own loan obligations. The Association for the Protection of Bank Borrowers (SYPRODAT) has voiced alarm over what it describes as a severe lapse in bank oversight and accountability.
In a statement, SYPRODAT highlighted a troubling trend where banks have seemingly turned a blind eye to developers’ financial mismanagement. The association claims that instead of enforcing the terms of loan agreements with developers, banks have allowed these developers to divert funds paid by home buyers to cover their own expenses rather than repaying their construction loans.
“As a result, many buyers who have already repaid their loans are left facing the fallout of these developers’ financial irresponsibility,” SYPRODAT stated. It argued that this negligence by banks raises questions about their role in the current crisis, affecting approximately 10,000 buyers who are now trapped in this dire situation. SYPRODAT has asked the government to intervene urgently.
