News Column

Banks expect to be treated as a preferential creditor?

August 9, 2014

I donít understand the position of the parties involved in the foreclosure debate. The banks were negligent, they gave loans they shouldnít have done, (to friends and family) against land that wasnít worth the amount of the loan (collateral) and then allowed the loans to continue without being serviced and no payments being made (over 90 days) making no provision for bad debts, not writing the debt off after 12 months as per good banking procedure. Not chasing for payment, not making the develop bankrupt to recover some of the outstanding amounts owed. And now the banks expect to be treated as a preferential creditor? Well what about negligence on the part of the bank? I know if I lost my villa to such poor and dishonest banking practices I would be demanding that the bank takes the loss. In the meantime if I was in a position of losing my home I would be asking for an explanation from the bank, in writing as to why nothing was done until their hand was twisted by an outside body (Troika). I would also ask the finance minister (if Cyprus has one) as to why nothing was done, explaining that if my villa is included in the list of properties I will be demanding compensation.

Peter Davis, Droushia

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Source: Cyprus Mail

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