Bank of Cyprus (BoC) is advertising a new housing loan for the first time in months, marking a new beginning for the island’s biggest lender, which was forced to seize people’s deposits to recapitalise.
“Today marks a new beginning for us, in our new home,” the ad reads. “Yes, with a Housing Loan from Bank of Cyprus.”
The scheme provides for a maximum loan of €200,000 with a 4.75 per cent interest – APR 4.85 per cent.
It offers optional suspension of up to two monthly instalments a year and a grace period of up to 24 months on the payment of capital and interest.
There is also a reward for consistent repayment with a lower monthly instalment every 13 months, provided that all 12 previous instalments had been paid on the due date.
Last week, the Central Bank approved the directors elected to the board of BoC 14 days after they were elected in an AGM.
BoC was the biggest of the two Cypriot banks deeply affected by a €10 billion bailout from international lenders.
The second, Laiki, was wound down. Large depositors in that bank saw amounts exceeding €100,000 seized and what remained was merged with BoC.
Almost half – 47.5 per cent — of uninsured deposits in BoC were also seized to recapitalise the lender.
Depositors received equity in return.
The cash-grab was unprecedented in the history of the eurozone debt crisis.
For more information about the loan: http://www.bankofcyprus.com.cy/en-GB/