Cypriot Bank Writs and Termination Notices

In recent days it has emerged that UK clients are now being served with writs from Cypriot Banks in relation to the non payment of loans taken out for the purchase of property in Cyprus. The writs give the recipient a period of 30 days in which to file an appearance in court in Cyprus to defend the claims made within those writs and a further period of fourteen days in which to file a formal defence; this latter time frame can be extended in most instances to allow for the preparation of that defence.

It is therefore critical that any client being served in the UK seek legal advice from Cypriot counsel in order to respond within the stated deadline as failure to file the required appearance in Cyprus will result in the court progressing the claim in the clients’ absence and securing judgement; there would then be no opportunity to challenge the judgement or its subsequent enforcement.

Such enforcement can take place on properties in England as the judgement of the Cyprus Courts can be registered (this is a formality) and executed in England.

Additionally clients are also receiving Termination Notices from the bank in relation to the non- payment of the loans (Writs are likely to follow) and it is again critical that clients formally respond to these notices and to counter claim concerning the content of such notices.

We strongly advise that any recipient of such writs or termination notices act to address the matter and not simply ignore the service and the potential implications to the same.

Should you have any concerns in this area please dont hesitate to contact one of our team.