Nicosia.- The Bank of Cyprus has begun auctions of foreclosed immovable property, signaling the first auctions under the new foreclosure legal framework implemented as part of a €10 billion bailout by the EU and the IMF.
The property placed into auction was foreclosed by the bank against non-performing loans that have been terminated after a legal process which began a decade ago. No primary residences will be included in the first wave of auctions.
Auctions began on Thursday in Paphos, placing seven plots for sale. Three plots attracted interest yielding €1,05 million. Auctions were also carried out in Nicosia on Friday, with four plots placed for sale but no interest was shown.
The Bank of Cyprus will continue auctions in Limassol and Famagusta District whereas other banks, such as the Cooperative Central Bank and Hellenic Bank will follow suit in July.
Under the new legal framework a bank can auction the property at a reserve price of 80% of the current market price. If no interest is attracted, the bank can place the property to a new auction with the same price while in a year’s time from now it can auction the property with a new reserve price amounting to 50% of the current market value.