Cypriot property market shows slow recovery in 2010
Moody’s has downgraded the deposit and debt ratings of the Bank of Cyprus and the Marfin Popular Bank. They downgraded the deposit and debt ratings of Marfin Popular Bank Public to Baa2/Prime-2 from A3/Prime-1 and Bank of Cyprus Public to A3/Prime-2 from A2/Prime-1. Moody’s has confirmed the deposit and debt ratings of Hellenic Bank Public Co Ltd at Baa2/Prime-2.
The report stated that the country’s real estate market, which is a significant component of the banks’ loan books, remains a risk area with unclear growth prospects and weak demand.
Cypriot government approved the creation of a Financial Ombudsman, offering a cheaper and more simplified option of dealing with economic disputes. Consumers can apply to the Ombudsman to seek out-of-court settlements on disputes with financial institutions (FI). In good news for property investors, Consumers will be able to submit complaints of a financial nature and the Ombudsman can mediate and arrange a friendly out-of-court settlement.
In General, consumers will be able to seek compensation without having to go through exhausting court procedures. However, if consumers wish, they can turn to court. Ionas Nicolaou, The Legal Affairs Committee chairman said if there were any problems in its implementation, amendments would be made.
In more good news for investors, foreign interest in the Cyprus property market is showing signs of a recovery with sales during the first half of 2010 up 9.6% on last year. According to figures released today by the Cyprus Department of Lands and Surveys, A total of 231 property sale contracts in favor of foreign buyers were deposited at Land Registries throughout Cyprus in June 2010, compared to 201 in June 2009; an increase of approximately 18.5% compared to last year.
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