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There are currently 3,000 unresolved cases involving unpaid loans piling up in Cyprus' courts. These cases are being handled by judges based on the workload of each district court.
According to information from the Supreme Court, no separate court has been created just for these loan cases. Instead, a new law passed in the fall of 2023 sets up a special process within the existing district courts to deal with them, rather than creating a brand-new court.
One of the key reforms introduced last year aims to simplify the legal process for property foreclosures, particularly for homes valued under 350,000 euros. These cases are considered more sensitive and are now handled in a different way to speed things up.
Currently, around 19.9 billion euros in loans are in the hands of Credit Acquiring Companies (CACs), but these loans are still not being paid off, meaning they’re considered non-performing. Another 1.7 billion euros worth of loans are still sitting in banks' portfolios.
In its annual report for 2024, the Central Bank of Cyprus pointed out that banks have improved their loan portfolios in recent years by transferring these bad loans to Credit Acquiring Companies (CACs). However, these loans are still part of Cyprus' private debt problem. The Central Bank believes that settling the debts held by these companies will play a crucial role in reducing overall private debt.
