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North Cyprus News Update | interest rates may be reduced but on whose debt?

Reading yet again of the proposed new law to cap interest rates on all loans, I had to suppress a laugh. I read for instance that Ms. Stokes of the HBPG is quoted as saying “This is fantastic news. Thousands of people, ex-pat and Turkish Cypriot, will be affected. It is a positive step. It was always about the the absence of a cap on interest rates, and not the loan itself. It is certainly going to clear the way for buyers who have fallen victim to the unscrupulous banking system”.

WHAT!!! It was always about the loan, taken without the knowledge and permission of the purchaser who had already Contracted to buy and paid for the property. The interest rate was just compounding the crime. The unscrupulous bankers (not all) just added to the misery of the hapless purchasers. Please, please, do not say that when the debt is less the purchaser will be able to afford to pay off the loan. Would that be the loan they never saw a penny of, or indeed knew existed until legal action started against them? That is the whole point, the purchasers never needed a loan, they paid cash for their properties. Money earned through a lifetime of hard work and a dream of a retirement in the sun, free or worry and stress.

Surely, if the Government are brave enough to bring this new law to the statute books, they should then take the next brave step and insist the charges put on the victims’ homes are lifted and that the new lowered debts become unsescured loans and directly attributable to the borrower, i.e the builder or landowner..

Then I read comments of Bulut Akacan, former Director of Santa Fe and chairman of the Interest Victims’ Council’ quoted as saying “We want to see precisely the details of the draft Billl” Well Mr Akacan let us see if Santa Fe act honourably in all this.

One thing is certain, these proposals are just that, ‘proposals’. One can only hope that the Finance Minister Mr Ersin Tatar receives the full backing of his Government and that this draft Bill does make it into Law. I know he is aware that unless it does and is made retrospective there can be no hope of any recovery in the Property Sector nor indeed in the Tourism Sector, one is very much dependent on the other.

I have already dealt with the effect of the proposed capping of interest rates in a previous article, which revealed that K5’s debt using the then proposed capping, would drop by over one and three quarter million lira. Good news for the borrowers Abdurrahman Guney and Yuksel Yilmaz, but please, let us not lose sight of who borrowed the money and should therefore be the ones repaying it.

Never give in never give up

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