Great article but it only adds to the frustration of the trapped borrowers.
Many had been tricked by banks to take on loans that did not really need to buy bigger homes, cars, go on vacations etc. At the same time, friends, koumbaroi and “partners” of the banksters had been treated with better terms than the rest of the people.
So now, as the author rightly puts it, the ones that cannot afford the house they live in are branded as strategic defaulters because according to the bank’s logic, they should sell and move to a smaller house, while the others who had borrowed and managed to get better terms due to their relationships or “under-the-table” payments to bankers have been rewarded with losing (if) only the invested property which in most cases did not even cover the whole loan.
The New York fraudulent conveyance law would have been a perfect tool to protect the people and the state (from potential bailouts) from the irresponsible actions of the banks.
Is there any way to bring this law to Cyprus even now? It will at least help prevent future mishandling of excess liquidity and frankly it would probably save thousands of “strategic defaulters” if it is applied retrospectively and fully expose the fraudulent activities of the banks.
Is there a study that shows how many loans were given out without the proper and prudent assessment of the borrower?