The European Central Bank and European Commission have applied to the Cyprus Republic to start implementing the insolvency and foreclosure legal frameworks in order to reduce the number of non-performing loans. The regulations have already been implemented, but not generally used. This is explained by the upcoming 2017 President elections and by close relations between Cypriots, who treat each other as ‘kumbaros’.
Cyprus has successfully withdrawn from the financial bailout program, and the country’s authorities have seized the moment to freeze reforms that were endorsed under Troika’s pressure and that were highly unpopular with the public in Cyprus.
Previously, Cyprus had its golden times, when its real estate cost increased, overseas businessmen deposited money to local banks, which in turn provided multiple loans to Cypriots.