Details on the Decree for the suspension of loan installments by the Ministry of Finance

The Parliament has voted measures for the suspension of loan installments which are outlined as follows by the Ministry of Finance:

“ The Ministry of Finance welcomes the decision of the Parliament to approve the Law on emergency measures by financial institutions and supervisory authorities.

The extraordinary suspension measures aim at protecting borrowers and are fully in line with the decision of the Board of Directors of the Central Bank of Cyprus dated 25 March 2020, as well as the announcements and clarifications of the 3 European Financial Authorities”.

According to the Decree:

  1. The obligation to pay installments, including interest on credit facilities granted and / or purchased and / or managed by financial institutions, is suspended for all beneficiaries.
  2. The beneficiaries are natural persons, legal persons governed by public law, self-employed persons and businesses who have had no delays in paying the installment more than 30 days from the date provided for by existing contractual obligations on 29 February 2020.
  3. The above extraordinary measures are valid from March 30, 2020 (date of issuance of the Decree) until December 31, 2020.
  4. The suspension of installments and interest shall apply from the date of issue of the Decree, provided that the beneficiaries send in writing or by mail or by e-mail or fax to the financial institutions the expression of interest as set out in the Annex to the Decree concerned.
  5. All installments of capital and interest for which the payment period is suspended at the date of expiry of the decree shall not become immediately chargeable.
  6. On the expiry date of the decree, the payment of installments and interest shall resume and the period of payment shall be deemed to have been automatically extended for any period required.

The form ekdilosi_endiaferontos  needs to be completed and sent to the relevant financial institutions, as well as the Decree of the Ministry of Finance which can be found here 20200330_final_diatagma .