I read the article in today’s paper (August 8) regarding the foreclosure of a property by the Hellenic Bank. What is wrong in repossessing a family’s home? You take a loan out to fund a house, car or a business venture. If subsequently you are unable to fund the repayments then you should lose the item purchased. This is only fair and reasonable, as the flip side of this is taxes go up, bank charges go up and should all this fail Cyprus will be in for another haircut. Think on debt evaders.
The repossession of property have long been established in the UK and appears to work as the UK has a low level of bad debt in relation to the size of the economy. A figure of 7,700 cases were recorded last year against 9.2 million households having a mortgage. (Figures obtained from Google and are not verified), but give at least an indication as to the market size.
The people of Cyprus must undertake a fundamental strategic change to debt and embrace change swiftly, as ion can’t keep living on other people’s money.