Commission Question – Could the Commission please provide information on what action it intends to take, or has already taken, in relation to Cypriot banks selling mortgages dishonestly?

Question to the Council for written answer:

Could the Commission please provide information on what action it intends to take, or has already taken, in relation to Cypriot banks selling mortgages dishonestly?

 

Answer given by Mr Katainen on behalf of the Commission:

The pending national court procedures will show whether the Cypriot banks have infringed potential duties to inform about certain risks of a loan contract, in particular with regard to loans in a foreign currency.

The Commission is aware that real estate purchasers in Cyprus, for various reasons, did not always receive the property title immediately after payment of the purchase price. Since 2011 such purchase agreements can be registered with the Cypriot Land Registry in order to increase legal certainty for the purchaser.

In order to work towards a sustainable solution, the Cypriot authorities committed, as part of the economic adjustment programme, to establish a task force that will develop recommendations in order to address this issue.

0 replies

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply

Your email address will not be published. Required fields are marked *