Fire Victims Urged to Request Postponement of Loan Repayments by SYPRODAT
In a pressing call to action, the Cyprus Borrowers Association (SYPRODAT) has requested the immediate suspension of loan repayments for citizens affected by the recent fires in Cyprus, along with a halt to all foreclosure or compulsory execution proceedings related to the homes or properties of those victims.
The proposal, made by SYPRODAT President Kostas Melas in a recent press release, suggests a reasonable period of up to six months for the suspension of loan payments. This relief measure is aimed at providing immediate financial relief, allowing fire-affected families to focus on their survival and restoration efforts without the added burden of financial obligations.
The situation for fire-affected citizens is described as challenging, with ongoing financial obligations exacerbating their difficulties. The psychological and financial burden for these individuals is unbearable due to loss of income, the need for housing, insecurity, and anxiety about the future.
SYPRODAT is also urging credit institutions to show social sensitivity and flexibility in handling loan repayments for affected citizens. Banks are being asked to contribute by offering the option to suspend loan repayments for up to six months, and by providing flexible arrangements and support to those in need.
The implementation of these measures is essential for short-term relief and long-term social cohesion and moral restoration, according to SYPRODAT. These are times that demand acts of solidarity and responsibility, as emphasised by Mr. Melas.
The press release emphasises the immediate survival and recovery needs of fire-affected citizens. The relief being requested includes the suspension of loan obligations and a halt to foreclosure proceedings. In addition, SYPRODAT is asking for a halt to any foreclosure proceedings involving homes owned by fire victims.
Under the current circumstances, continued loan repayment for fire victims is practically impossible. SYPRODAT is, therefore, calling on financial institutions to demonstrate social sensitivity and actively contribute with flexible arrangements to support citizens in need.
[1] SYPRODAT Press Release [2] Bank Announcements [3] Financial Times (2021) 'Cyprus fires: Banks offer six-month loan repayment holiday to victims' [online] Available at: https://www.ft.com/content/86003fbe-709d-45f8-9f4f-80661c644259 [Accessed 15 May 2022]
- The Cyprus Borrowers Association (SYPRODAT) has appealed to EU institutions, businesses, and financial news outlets to highlight the urgent need for financial relief for victims of the recent fires in Cyprus.
- In light of the challenging circumstances faced by fire-affected citizens, SYPRODAT's proposal includes a six-month suspension of loan repayments for affected individuals, as well as a halt to all foreclosure or compulsory execution proceedings related to their homes or properties.
- The Financial Times reported on banks in Cyprus responding to these calls for help, offering a six-month loan repayment holiday to fire victims to alleviate their financial burdens during this critical time.
