"NO KOCAN, NO MONEY!" is the only way to buy North Cyprus Property

Abdurrahman Guney of Kulaksiz Construction Ltd and Yuksel Yilmaz (landowner) colluded together, after signing a legally binding Contract which expressly prohibited them from doing so, to obtain a loan from the bank. From their point of view the interest rate was irrelevant 80% – 1000% what did it matter, the likelihood of them repaying it was small.

Kulakszi 5 was standing there almost fully paid for, the only outstanding money being the final payments due on completion of the site so they were unable to access that money. The site remains unfinished with builder rated electricity to this day

Now lets factor in the people whose lives have been decimated by these fraudsters, the actual owners of these villas on Kulaksiz 5. Had they actually borrowed money on the security of their homes and then reneged on the agreement, you would understand the banks need to take the action they did. That was not the case, the bank, entirely without their knowledge or consent accepted their homes as security against a mortgage (money). They, the owners never received a penny of that money. Is it legal under current laws in the TRNC – yes. Is it moral, ethical, good lending practice or right – Not in my opinion.

Now lets look at the bank. Surely even here, the most rudimentary checks take place.

1. Look at the applicant(s), run a credit check on them.

2. Check their ability to make the monthly payments.

3. Check the security being offered i.e is it theirs to offer. The bank knowing the law here would surely ask the question ‘the villas on this land, have they been sold, show us the Contracts’

Had they seen the Contracts they would know that to advance the money to the applicants they would be putting the real owners homes at risk and in at least two cases had the potential to be making the owners victims of fraud.

No. 1 Did they have good credit rating – I don’t know.

No. 2 Ability to repay. Well Abdurrahman Guney was driving around in a top ot the range 4 x 4 right up until he did a ‘runner’ recently but did the bank look at the accounts for Kulaksiz Construction Ltd – I don’t know. Yuksel Yilmaz (landowner) Manager at Pegasus Airlines Lefkosa Office, even at three times the minimum wage(guessing) he had a wife and son in Mersin, his wife had a job as a school secretary but he was keeping two homes running. At a meeting with the bank on 9th July 2008, the manager claimed that Yuksel Yilmaz was his friend, so it is reasonable to assume that the manager would be aware of the landowners domestic arrangements.

Now the really big question, why would two men, who on first appearances looked affluent respectable business men need to borrow a sum as small as 100,000 TL. Why were the alarm bells not deafening the bank? We all know what 5+ years and 80% interest has done to that small sum – 2,000,000 TL

Was this a scam – I dont know.

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