Finance Minister Urges Cyprus Banks to Reduce Lending Rates

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As house prices continue to fall, especially in the coastal resorts, Charilaos Stavrakis has called on Cyprus banks to reduce lending rates to help combat the economy slump.
 
In November last year, Cyprus banks defended their actions to increase lending by saying it was a neccessary measure in order to ensure the banking system in Cyprus remains stable and competitive.
 

However, house prices in Nicosia have risen by 3% according to a survey carried out by the Contractors' Association.

 
In the same survey, it found that property prices have fallen by as much as 30% where the owner is British. This could be due to British owners being able to afford to sell at lower prices because of the fall in the sterling exchange rate.
 
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