The Bank of Cyprus (BoC) has reached a restructuring agreement with one of the islands most influential developers Leptos Estates, in order to restructure a non-performing loan worth several hundred million euros. The agreement is still pending approval by the board of Directors, Chrystalla Georghadji the Governor of the Central Bank of Cyprus said.
“The issues regarding inadequate collateral and the lack of floating charges were taken into account, and under the circumstances, we believe the restructuring offer to be both fair and satisfactory” she stated. “Note that the estimated assessment of property collateral was conducted on the basis of existing residential zones with a building quantity of up to 60%”.
Senator George Perdikis, President of the Cyprus Green Party released a letter to the Governor dated January 16th revealing the value of the company’s loan in which Leptos Estates financed the construction of the Neapolis project in Yeroskipou in Paphos, is currently valued at €580m.
A floating charge is a security that has a fundamental asset which is subject to change in quantity and value.
A source close to the situation who spoke anonymously said that the outstanding amount was now less than what is reported due to some payments made a year ago by the company in which no further details were provided.