The largest lender on the island, Bank of Cyprus, is the first to seek to foreclose on collateralised real property in more than twenty cases concerning non-performing loans (NPLs) collectively worth around €85 million.
These procedures are the result of the relevant legislation that was voted less than a year ago and suspended in December and came into force last week.
As a source stated, there are about 25 cases, all dating back to 2013 or earlier, for which a court decision has already been issued. This week, both borrowers and guarantors will be notified for the initiation of the foreclosure procedure by bailiffs.
The properties that are affected by these foreclosure procedures include commercial properties and land and no case of a primary home, as stated from a source of the Bank of Cyprus. As well, the foreclosures are to be expected to take place at the beginning of September.
Following the Bank of Cyprus, Hellenic Bank, the second largest lender in Cyprus, is expected to initiate such procedures in September to foreclose collateralised property.