I refer to the editorial on September 12 where you suggest that the optimum strategy for the Bank of Cyprus concerning non-performing loans would be to sell the properties that the defaulters are using as collateral.
Let me spell out the implications – There are some 80,000 title deeds awaiting transfer to occupiers who have fully paid for the property. Due to technicalities The Land Registry has not transferred these titles from developer to purchaser. Probably some 20,000 of these titles are held by developers
with debts to a bank.
So these occupiers would have the house they paid for seized by the bank and sold from under them.
Quite apart from the appalling injustice, that would put 40,000 people on the streets homeless.
Is that your solution?
It would also precipitate the collapse of the construction industry. Who is going to buy a house, if, having paid the asking price, it does not belong to them. For at least two years it will belong to the developer and if he defaults on bank payments the house will be sold by the bank.
Derek Smith, Oroklini