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Cyprus News Agency: News in English, 08-05-28
CONTENTS
[01] HOUSING MARKET - FINANCING
[01] HOUSING MARKET - FINANCING
The government has welcomed a Central Bank decision to ease regulations
on the housing market by increasing the ceiling of finance for the
purchase of a home. The construction industry contributes millions of
euro to the state coffers, therefore the government expresses its
contentment with a Central Bank decision to increase the finance-limit
for the purchase of non first home, Minister of Finance Charilaos
Stavrakis said here Wednesday. tavrakis, who was speaking after todays
Cabinet weekly meeting, stressed the importance for the local economy
of the Central Bank decision.
The Central Bank of Cyprus has attempted to cool the housing market by
regulation, most notably by increasing the loan to value ratio from 30%
to 40% for private purchasers (excluding first-home buyers) with effect
from August 2007. House prices in Cyprus have risen rapidly during the
past years causing the CBCs reaction. Later on, the Central Bank
decided to alter its previous regulation thus decreasing again the loan
to value ratio back to 30%.
The Minister of Finance was also asked about the future of Eurocypria,
given the financial difficulties faced by the national air carrier.
Stavrakis said that the government considers equally important both air
carriers, Cyprus Airways and Eurocypria, and wishes for their financial
robustness. He added that currently there are no specific plans under
examination but Eurocyprua will study different options proposed by
experts the company is going to employ. He also said should the final
decision will be in favour of a strategic investor, then the preference
lies with Cypriot investors related to the tourist industry.
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