Cyprus: continuation of real estate freeze

The foreclosure of a main residential house in Cyprus with an estimated value of up to €350,000, which was a security measure, looks set to be extended soon as the year draws to a close.

In July, lenders and banks introduced this restriction, which, originally set to expire on October 31, is ready to be extended for another two months. The extension is expected to remain in place until the government and the parties running the country reach an agreement on a mutually beneficial legal framework for the rules.

This pause was introduced to allow the Ministry of Finance enough time to meet the demands of the parties running the country.

Unfortunately, the drafting of the legislation faced significant delays, leading to increased political pressure on creditors. While the companies in charge of the loan buyout have denied knowledge of such pressure, discussions on extending the freeze continue, and an official announcement of an extension is expected soon.