The Cyprus Banks Association announced they would extend the time  of  repossession concerning primary homes estimated value at up to €350,000 until the end of March 2021.

According to a written statement by the association, its members “taking into account the existing  economic conditions of covid 19 , the procedures for sale of mortgaged real estate properties with a current value of up to €350,000  extended until the end of March 2021.”

The association clarified that the suspension does not apply to mortgaged Cyprus properties related to credit facilities, for which the bank has already sold the the property to third person or has signed an agreement.

This decision enters into force on Monday, December 21, 2020.

Finance Minister Constantinos Petrides said last week he had appealed to the Cyprus bank association to apply targeted suspensions until the end of March 2021.

Extending a suspension of foreclosures on primary Cyprus residences tied to loans is not expected to affect the banks’ activities in the next few months as they had already made an informal pledge not to move against such cases. They do, however, start procedures when borrowers do not cooperate or are deemed unviable.