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North Cyprus Property Victims – Draft Law Restricting Bank Loan Interest Rates

I have found some very interesting information on Cyprus 44 and since I know the poster is the most reliable person on there, I will without reservation take this information to be correct.

The Government have come up with a law to curb the excesses of the Banks and their lending policies here in the TRNC. The proposed new law is in its draft stage which means it is by no means accepted and could well fall at the first hurdle. What is encouraging is that it has even made it to the draft stage. There is no doubt that it will be a miracle if it ever gets to the statute books. Its biggest obstacle will be getting it past the Bank lobby. We all know that the Banking Industry in the TRNC is powerful and has many allies in Government.

The draft affects the interest rates charged to borrowers and, according to Havadis newspaper, if the draft in its present form gets as far as the statute books, this is the new formula that will be used when calculating the final debt on any loan:

Year TL Other Currency

2000 6.35 2.27

2001 5.5 2.12

2002 4.47 1.97

2003 3.80 1.95

2004 3.20 1.73

2005 2.78 1.62

2006 2.49 1.52

2007 2.16 1.41

2008 1.85 1.30

2009 1.57 1.22

2010 1.35 1.15

2011 1.17 1.07

Using the above formula the Kulaksiz 5 debt would be the sterling loan taken in March 2005 £1,600 x 1.62 = £2,592

Using the above formula the Kulasksiz debt would be the lira loan taken in Nov. 2005 100,000 x 2.78 = 278.000 lira

A total of no more than 286,000 lira, considerably less than the debt at the auction of 2,077.000 lira?

Now the proviso is that it is to be applied to cases that have not been settled. Now who will decide that? I am sure Akfinans Bank Limited will claim that the Kulaksiz 5 case is settled. However if that is so, what are we doing in Court on Tuesday 29th November and why is there a case lodged with the EHCR?

Never give in, never give up.

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