Cypriot government to sell state owned properties
The Cyprus government is considering selling state owned properties and issuing bonds to raise the €200 million it owes to the Social Security Fund, according to reports.
The Cyprus government holds several properties that are considered surplus to requirements and its sale will generate much need income to raise around €200m (£180m) to pay off debts. After clearing the debt, the government expects the Fund should grow to create a reserve of more than €1 billion in the next five years.
Industry experts suggest that the government should consider using a small amount of money from the Social Security Fund to help Cyprus struggling building industry. But Cyprus-property-buyers.com stated that as the Government is already in debt to the Fund to the tune of €200 million, and it cannot fund the ailing construction sector. The Cypriot government the sale of surplus state owned properties could make an important contribution to resolving the Government’s budget problems.
Jonathon P Salsbury, manager of contracting and developing company Cybarco, said that Property in Cyprus is continuing to do well because it is not dependent on foreign buyers. He commented: “Cypriots themselves buy second homes in a reasonable number so you’ve got a market that’s not entirely dependent on international buyers.”
The Royal Institution of Chartered Surveyors’ European Housing Review 2008 revealed that Cyprus has the highest house building rate per 1,000 populations in the EU.
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