In the Memorandum of Understanding it agreed with its international creditors in Spring 2013 the Cyprus government undertook to put in place an effective system for the enforcement of security over mortgaged land. Under the existing system the average time taken to enforce a mortgage is 10 years and enforcement commonly takes up to 15 years. This puts considerable obstacles in the way of lenders attempting to resolve non-performing debt, which is currently the main challenge facing the Cyprus banking sector.
A new law was enacted in Summer 2014 but a number of other measures enacted at the same time against the government's wishes delayed its coming into effect. Further insolvency legislation is currently going through the Cyprus parliament.
Insolvency law reform is therefore a topic of considerable public interest in Cyprus at the moment and "Foni Tis Lemesou", a local news magazine, recently published a comprehensive overview of the topic by Elena Christodoulou, an associate in our corporate and commercial department. To view Elena's article (in Greek), please click on this link.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
