Having regard to the financial difficulties faced by Cyprus bank borrowers and the increased number of non performing loans in Cyprus, the Central Bank of Cyprus has published a Code of Conduct for the treatment of borrowers that face financial difficulties.
The Code applies to all Cyprus financial institutions licensed by the Central Bank of Cyprus. The primary aim of the Code is to facilitate negotiations between borrowers and financial institutions that would allow an arrangement that would reduce non performing loans. It contains procedures through which borrowers can restructure their loans and get the benefit of long-term viable solutions that are aligned with their current financial means. The Code also ensures that borrowers that face financial difficulties are receiving necessary, comprehensive and up to date information regarding the restructuring of their loans.
The Code can be found here.
Source: Harris Kyriakides LLC
