The Association of Cyprus Banks pledged before MPs today to resolve a problem faced by home buyers, who despite having paid for their properties are blocked from acquiring their title deeds due to the property developer`s debts.
The Association’s CEO Christakis Patsalides was responding to a request put forward by the MPs at the Parliamentary Committee on Financial Affairs as a step which would offset the bills tabled by the government on fast-tracking the reduction of non-performing loans.
“We acknowledge the efforts made by the country and Parliament and we should also make our own contribution,” Patsalides said, addressing the Parliamentary Committee.
He added that the Board of Directors of the Association had authorised him to convey this commitment.
Firstly, he said, banks will acquiesce for borrowers who have paid off their home to acquire their title deeds, despite the property being encumbered by a lien due to debts of the property developer who sold it to them in the first place.
He also committed that if a guarantor (of a loan) passes away, or declares bankruptcy, then banks will deduct his share of the guarantee from the amount sought from other guarantors.