Will Cyprus properties be protected?

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cyprus propertyThe banks in Cyprus are dealing with massive non-performing loans (NPL) up to 50% of all loans. Many of these loans were given to developers of Cyprus properties whom have sold the properties on to innocent buyers. Now that the developers are defaulting on their repayments, the banks are going after the properties, and as is the case in Cyprus with title deeds many ‘property owners’ do not have said deeds thus leaving them vulnerable to repossession.
Cyprus Property Bill is under discussion
The Bill which is designed to protect Cyprus property owners from these foreclosures has been heavily debated. The government which is opposed to the bill argues that if banks are not allowed to seize assets on NPL’s Cyprus could face a second economic crisis and struggling banks would be put under even greater pressure. Opposition parties say that it is the government’s job to protect the innocent property owners and that they should be doing more to chase down the developers and even lawyers who have miss-sold or miss-led properties owners.