A €27,000 loan taken out in 1970 has ballooned to €1 million, the president of the Cyprus Bar Association told the Parliamentary Refugees Committee during discussions on foreclosures of housing units in government refugee settlements.
Bar Association president Michalis Vorkas cited the case whilst addressing the committee.
According to figures presented to the committee, mortgaged loans in refugee settlements total 1,320 cases.
Based on the same figures submitted by the Central Bank, of the 1,320 cases, 554 relate to mortgaged loans and 776 to mortgaged properties with non-performing loans.
The committee heard that another 599 properties are held by various companies managing problematic loans that have taken the route towards foreclosure of the affected properties.
Given that housing units in refugee settlements number 14,000, this means one in seven housing units in refugee settlements is potentially at risk of foreclosure unless a solution is found.
Title deeds issued
Speaking on behalf of the Town Planning Department, Katerina Antoniou said that for most of the 14,000 units in government refugee settlements, title deeds have been issued, so the department cannot intervene in any way.
On this point, the Bar Association president observed that the state granted title deeds and now some of these properties are at risk of foreclosure. He also pointed out that whilst owners are struggling financially, the so-called commission in the occupied areas is promoting the sale of refugee properties.
Those invited to the committee said there are examples of refugees selling their beachfront properties in the occupied areas to prevent the foreclosure of their properties in the free areas.
Property management companies gave assurances that each case is handled based on its own circumstances.
Committee members called on all involved to show sensitivity, whilst also asking for consultation time before foreclosures proceed.
