The Cyprus Land Development Corporation (CLDC) announced Monday a 10-month moratorium on the payment of loan installments, from March 1 to the end of the year, as support to borrowers amid the economic crunch due to measures being taken to contain the spread of coronavirus.
In a statement, the CLDC said the suspension on loan installments applied to all borrowers, irrespective of whether they were in arrears as of February 29 this year.
The moratorium concerns the period March 1 to December 1, while interest on these deferred installments would be cut to zero during this time.
As of January 1, 2021 the interest on the debt balance will revert to the current rate, 2.25 per cent.
“The decision takes into consideration the adverse circumstances and uncertainty caused by the crisis as a result of the coronavirus pandemic and is geared at supporting clients at this difficult time,” the CLDC said.
The moratorium does not apply automatically; rather customers must apply in writing. The relevant form is available on the organisation’s website at www.cldc.org.cy.
Where a loan guarantor exists, he or she must co-sign the application form.
The CLDC clarified that the suspension on loan installments does not apply to borrowers against whom the organisation has taken legal action or in cases where a court decision has been issued.
Once the moratorium expires, the loan repayment period will be extended by 10 months for borrowers who had no arrears as at March 1 this year. Borrowers with arrears as at March 1 will be handled on a case-by-case basis, in terms of the extension of the loan repayment period.
The CLDC also announced it was donating €50,000 to the ministry of health in the fight against coronavirus.