Applications to suspend repaying loans in Cyprus have exceeded 15,000 after the government announced a nine-month freeze as part of emergency measures to mitigate the impact of the coronavirus outbreak.
Cyprus parliament, earlier this month approved a law for taking extraordinary measures at financial institutions and regulatory authorities with the Finance Minister issuing a decree calling for a moratorium on loan instalments for nine months.
According to figures given by Cyprus’ banks, as of Friday, some 15,000 borrowers had submitted their forms with the majority expected to be approved.
It is believed that a large number of applications were also filed online during the weekend.
As reported, Bank of Cyprus has received 8,500 requests, while Hellenic Bank received 6,000.
BoC reported that 80% of requests were filed by individuals, and 20% by companies, some 65% of requests were related to housing loans.
Hellenic Bank in previous announcements said that 90% of applications are expected to go through as they are eligible for the loan instalment freeze.
According to the Finance Minister’s decree, eligible borrowers are natural persons, public organisations, self-employed and companies which had no arrears over 30 days on 29 February 2020.
Hellenic’s data shows that 75% of requests are related to retail banking, while 25% were sent in by businesses.
Some 40% of requests were for housing loans, 45% were consumer and vehicle purchase loans and 15% regarded credit card instalments.
Meanwhile, the Cyprus Housing Finance Corporation, reported that it has received 1,200 requests for a freeze on instalments for housing loans.
Central Bank governor Constantinos Herodotou cautioned borrowers last week, warning them that they will still have to pay frozen instalments plus interest.
The way instalments are to be repaid will be negotiated between the borrowers and lenders.
He explained that this could either be done by (a) increasing the number of the remaining instalments following the freeze period, (b) extending the duration of the loan and / or a combination of (a) and (b).
