The Cyprus Borrower Protection Association, known as Syprodat, said it remains available to borrowers for information, guidance and support, helping improve understanding of housing credit and seeking sustainable solutions that benefit all.

The association made the statement in a press release addressing housing loans and banking challenges in Cyprus.

According to the press release, Cyprus is currently among the euro area countries with the cheapest housing loans, ranking within what has been described in recent economic publications as the so-called golden five.

“Mortgage lending rates remain lower than the euro area average, theoretically strengthening citizens’ access to housing,” it said.

At the same time, the association said Cypriot banks continue a sustained effort to reduce non-performing loans in pursuit of further balance sheet consolidation.

“Despite full coffers and increased liquidity, a lack of a sufficient number of viable borrowers is observed, a factor that limits the granting of new loans,” it added.

At the same time, Syprodat said Cyprus is expected to complete the affordable housing plan, aimed at addressing the housing problem and supporting households struggling to cope with rising housing costs.

“The overall picture reflects a banking system with a strong capital base and competitive mortgage products, which is nevertheless called upon to balance financial stability, sustainable lending and growing social needs for affordable housing,” it said.

The association reiterated that it remains at the disposal of borrowers for information, guidance and support, contributing responsibly to a better understanding of housing credit conditions and the search for viable solutions for the benefit of all.