TRNC government considering retrospectively limiting North Cyprus Property Loan Interest Rates

A regular poster on C44, clearly a Turkish speaker, has posted that he has been watching with interest reports on TV of a proposal to change the laws on Bank lending policies on North Cyprus Property loans and interestingly to make these changes retrospective.

Under discussion has been the idea of limiting the amount of bank interest on any loan to no more than four (4) times the amount of the original loan, to include the capital content when the loan is in Lira and to no more than two (2) times the original loan including the capital content when in a foreign currency.  Now here is the most interesting part of this proposal – TO MAKE THIS CHANGE RETROSPECTIVE.

The last part of this proposed change has interesting implications for K5 and indeed every single member of the ‘mortgage queue’

Let us just take the Kulaksiz 5 scenario as an example. The original debts taken by Messrs Guney and Yilmaz were:

In March 2005 – £1,600 so if you multiply that by two (2) you have a total of £3,200

In November 2005 – 100,000 Lira so if you multiply that by four (4) you have a total of 400,000 Lira.

Using an exchange rate of 2.85 on the sterling then the total amount Akfinans Bank Limited could expect to receive would be  409,120 Lira

or let’s round it up to 410,00 Lira  and  using the same exchange rate £143,860. Somewhat less than the 2,077,000 Lira using the Mafia style interest rates applied by the Akfinans Bank  Limited.

There are three houses on Kulaksiz 5 built in exchange for the land and given to the landowner. Now it does not take a genius to work out that the value of  those three houses would more than cover the debt  if the the proposal makes it to the statute books. That way the true borrowers would be penalised and not the innocent purchasers i.e. the British ex pats.

Now we know that the Bank are going to shout that they have spent a lot of money on K5, my answer, nobody asked you to.  In fact it is documented that every member of K5 including myself asked them not to and made it clear that that they were doing so without our approval and consent.  I personally made my letter to them public on these pages – WITHOUT-PREJUDICE. This document was also emailed to the Bank.

If  this proposal does make it on to the statute books the implications to every person with a home illegally mortgaged are immense, because if you do decide to pay someone else’s debt you will secure your home but  will not lose the right to sue the author of your problems for return of that money and recompense for all the trauma and stress caused to you for these last few years. Maybe they will have very little you could gain from them, but you could make their lives the living hell they have made ours for so long. Revenge is a dish best served cold.

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