Top-Rated Debt Collection Agency in Cyprus

Your trusted debt collection agency in Cyprus, offering swift and reliable recovery services. Navigate with ease through local debt practices via our comprehensive guide, no upfront fees involved.

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The ultimate guide about debt collection in Cyprus

Grasping debt collection in Cyprus can be complex. With Debitura at your side, blending local expertise and global know-how, debt recovery becomes seamless. This guide is your ultimate tool, empowering you to tackle Cyprus debt collection scenarios proficiently.

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The Debt Collection Process in Cyprus

The act of pursuing and recovering funds owed primarily by individuals or businesses, termed debtors, defines the debt collection process. These debts may have various origins - loans, credit cards, or unfulfilled invoices for goods/services. It falls upon either the original creditor or a dedicated entity, ideally a debt collection agency like Debitura, to manage this recovery.

Collecting debts in Cyprus encompasses reminder issuance, repayment negotiations, legal action initiation or even reporting defaulters to credit agencies. Knowledge of national and international laws, coupled with negotiation skills and principled empathy, simplifies this sophisticated and sensitive procedure.

Nature and Timeline of Debt Collection in Cyprus

The process commonly begins with an “amicable collection phase”, a friendly, non-judicial approach to resolution. Taking approximately 3 months, at Debitura we provide a “no recovery, no pay” service where we only charge a minimal success fee upon reclaiming your owed amount. Our pricing policies are detailed here.

Certain scenarios necessitate legal action:

  • Disputed Claims: In case your debtor contests your claim, a court ruling becomes crucial.
  • Unresponsive Debtor: An unresolved claim after the amicable phase warrants legal escalation.

Legal Collection to Enforce Your Claim

The legal collection phase generally involves acquisition of an enforceable court order. This typically mandates legal representation via a local attorney in Cyprus, and the costs vary based on the complexity of the case and the debtor's response. We offer a tailored 'Find a Lawyer' service, a network of 500+ local attorneys can cater to your particular needs.

An unconditional court order from the judicial debt collection process, together with the debtor's solvency, empowers bailiffs to enforce your claim through asset seizure/salary attachment. Insolvency proceedings remain the last resort for debt recovery in Cyprus when the debtor is insolvent.

In this guide, we dig deeper into each stage of the debt collection process in Cyprus. We have comprehensive solutions to offer, from finding amicable solutions to initiating bankruptcy proceedings. Trust us to be by your side through it all.

01
Amicable Collection Phase: Local Expertise, No Cure, No Pay

Initiate with a friendly, out-of-court collection aimed at an amicable resolution.

This phase generally includes:

Direct Communication: Reach out to your debtor to understand the payment delay.

Payment Reminders: Use various communication methods (email, SMS, letters) for sending reminders.

Formal Notice: Issue a formal notice letter, outlining the debt and the consequences of non-payment.Our local vetted collectors handle this phase, ensuring cultural and legal appropriateness. Enjoy our "No Cure, No Pay" pricing model, meaning you only pay if the debt is successfully recovered.

Learn more about our amicable collection phase

02
Court Proceedings: Legal Action with Competitive Rates

If the amicable approach fails, escalate the matter through legal proceedings to obtain a court judgment, essential for debt enforcement.

This stage is crucial for formalizing the debt and enabling further enforcement actions. Our network of local attorneys will represent your case in court, providing expertise and familiarity with local laws.Legal proceedings are covered under our competitive legal rates, with clear and transparent pricing. Receive up to 3 competitive quotes for any required legal action.

Explore how we can assist with legal action.

03
Debt Enforcement: Effective Recovery through Local Collectors

With a court judgment in hand, you can pursue coercive measures like asset seizure and sale, referred to as debt enforcement.

Our local collectors and attorneys will execute the judgment, utilizing their on-the-ground expertise to ensure compliance with local regulations. This phase may include asset seizure, salary attachment, or other enforcement actions.

Explore how we can assist with legal action.

04
Bankruptcy Proceedings: Maximize Recovery from Insolvent Debtors

In cases where the debtor has no assets for seizure, consider filing for bankruptcy. If the debtor is already bankrupt, submit your claim promptly for verification.

Our local attorneys will assist you in navigating the complex bankruptcy process, ensuring your claim is filed correctly and promptly. This step is essential for maximizing recovery from insolvent debtors.We provide competitive legal rates for bankruptcy proceedings, with the option to receive multiple quotes to find the best local representation.

Explore how we can assist with legal action.

Get streamlined, effective recovery support at every stage. Start your claim quickly with our hassle-free, no-fee service.

Unravelling the Key Roles in Cyprus Debt Recovery

In the complex landscape of Cyprus debt recovery, it's essential to grasp the unique roles and duties of various critical contributors. Debt collection agencies, bailiffs, and lawyers all perform unique parts in the meticulously coordinated process of debt recovery, in compliance with Cyprus's rigorous legal system.

Debt Collection Agencies in Cyprus

In Cyprus, debt collection agencies are the pivotal first step in recuperating overdue payments. Their primary objective is to engage in a dialogue with debtors to encourage amicable settlement of dues through non-judicial means. These agencies deploy a variety of strategies such as correspondence, telephone communication, and digital outreach to negotiate repayment plans. It is at this stage, ideally before litigious measures become necessary, that creditors can opt to involve a collection agency. The realm of activities these agencies can undertake is meticulously regulated under Cypriot law, ensuring the protection of consumer rights and the prohibition of any form of harassment. While these agencies play a critical role in the pre-legal collection process by facilitating debt recovery without court intervention, they encounter limitations when it comes to enacting legal actions, where officially legal proceedings or the involvement of other specialized entities would be requisite.

The Role of Bailiffs in Cyprus

In Cyprus, bailiffs are fundamental in ensuring compliance with court orders related to debt recovery. These court-appointed officers are vested with the authority to execute various debt enforcement actions such as asset seizures and the implementation of payment arrangements. Their involvement becomes indispensable when all amicable attempts at debt collection have proven unsuccessful, and a creditor has obtained a judicial verdict against a debtor.

To involve a bailiff in Cyprus, it is imperative first to secure a legal judgment or order demanding the debtor to fulfill their financial obligations. Upon obtaining such an order, bailiffs undertake several tasks including the delivery of legal documents to debtors, confiscation of assets to satisfy the debt, and negotiation of payment plans in accordance with court directives. The rigorousness of their duties underscores the significant role bailiffs play in safeguarding creditors' rights while ensuring the fair treatment and protection of debtor's interests under the Cyprus Civil Procedure Law and specific debt collection practices.

The Role of Lawyers in Debt Recovery in Cyprus

In the realm of debt collection within Cyprus, the involvement of lawyers becomes crucial when navigating through the judicial phases of recovering debts. Typically, their involvement is sought after when amicable solutions have been exhausted or when the complexity and scale of the debt necessitate formal legal proceedings. Lawyers in Cyprus are instrumental in drafting meticulous legal documents, initiating the lawsuit by filing a Writ of Summons, and robustly representing the creditor throughout the court proceedings. Moreover, they execute a pivotal role in strategizing the enforcement of court judgments, which often involves the meticulous tracing of the debtor's assets and maneuvering through legal nuances to ensure the creditor's rights are prioritally upheld. Their comprehensive understanding of Cyprus's legal framework, coupled with expertise in the Cyprus Civil Procedure Law, makes them an indispensable ally for creditors seeking judicial intervention to reclaim outstanding debts.

Tap into Debitura's expert network of local debt recovery bailiffs and lawyers. Start your claim now.

Navigating the Waters of Amicable Debt Collection in Cyprus

In Cyprus, amicable debt collection stands out as a cost-effective and relationship-preserving method for reclaiming overdue payments. This non-litigious approach underscores negotiation and understanding, aiming to strike a balance that acknowledges the debtor's conditions while safeguarding the creditor's financial interests. In the bustling economic landscape of Cyprus, where maintaining business relations is key, amicable collection acts as a beacon of diplomacy in the debt recovery process.

The Integral Role of Debt Collection Agencies in Cyprus

Debt collection agencies, such as Debitura, play a crucial role in facilitating amicable debt recovery in Cyprus. By leveraging their expertise and resources, these agencies initiate the recovery process through adept identification of debts and debtor circumstances, following up with strategic communication attempts. The objective and professional perspective provided by such agencies often pave the way for more fruitful recovery, effectively bridging the gap between creditors and debtors without personal biases intervening.

Benefiting Both Sides: The Amicable Advantage

The amicable route offers numerous advantages for all parties involved. Creditors circumvent the hefty expenses associated with legal proceedings and simultaneously preserve invaluable business relationships, thanks to the process’s cordial nature. For debtors, it offers the chance to negotiate more flexible repayment terms, thus easing financial burdens and fostering a sense of goodwill towards the creditor. This strategy accentuates mutual respect and empathy, laying down a conducive framework for resolving financial disputes amicably.

When to Transition to Legal Proceedings in Cyprus

Despite the emphasis on amicable resolution, situations may arise where transitioning to legal action becomes inevitable. Indications for this transition include persistent non-communication, habitual breach of repayment agreements, or intentional dodging by the debtor. Resorting to judicial measures is a significant step and should only be considered after all amicable avenues have been thoroughly explored. The switch to legal recovery often entails considerable financial and temporal commitments and is generally seen as a last recourse.

Economical Amicable Debt Collection with Debitura in Cyprus

At Debitura, we streamline the process of international debt collection in Cyprus, offering our services on a No Cure, No Pay basis. Our transparent pricing includes a success fee of 7.5% to 30%, determined by the recovery amount, ensuring you invest only upon successful collection. To embark on a hassle-free debt recovery journey, click here to learn more about our pricing and begin with us.

Seamless Amicable Debt Recovery Process

Choosing Debitura means opting for an efficient amicable debt recovery process in Cyprus, typically concluding within 2-3 months. Our user-friendly approach ensures:

  1. Easy Sign-Up: Begin without upfront costs. Create your account to start.
  2. Upload and Manage Your Claim: Simplified claim upload process with transparent success fee assessment.
  3. Real-Time Tracking: Stay updated on your debt recovery progress through the Debitura dashboard.
  4. Legal Consultation if Necessary: Should amicable resolution prove unfruitful, we provide three competitive quotes from local law firms, empowering you to make informed decisions regarding legal action.
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"Debitura was a life-saver! They helped us recover a significant amount of unpaid debts in Cyprus, where we initially thought there was no hope. Thank you, Debitura, for your excellent debt collection services!"
Andreas Ioannou - Sales Director
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"Debitura helped us with debt recovery Netherlands and provided exceptional service. They were efficient, professional, and helped us collect what we were owed."
Katharina Schmidt - Controller
4.97/5
Average rating based on feedback from over 600 satisfied clients
87%
Average debt recovery rate, exceeding industry standards
100M+
Debt recovered for our clients in the past 18 months

The Debt Collection Process in Cyprus

The act of pursuing and recovering funds owed primarily by individuals or businesses, termed debtors, defines the debt collection process. These debts may have various origins - loans, credit cards, or unfulfilled invoices for goods/services. It falls upon either the original creditor or a dedicated entity, ideally a debt collection agency like Debitura, to manage this recovery.

Collecting debts in Cyprus encompasses reminder issuance, repayment negotiations, legal action initiation or even reporting defaulters to credit agencies. Knowledge of national and international laws, coupled with negotiation skills and principled empathy, simplifies this sophisticated and sensitive procedure.

Nature and Timeline of Debt Collection in Cyprus

The process commonly begins with an “amicable collection phase”, a friendly, non-judicial approach to resolution. Taking approximately 3 months, at Debitura we provide a “no recovery, no pay” service where we only charge a minimal success fee upon reclaiming your owed amount. Our pricing policies are detailed here.

Certain scenarios necessitate legal action:

  • Disputed Claims: In case your debtor contests your claim, a court ruling becomes crucial.
  • Unresponsive Debtor: An unresolved claim after the amicable phase warrants legal escalation.

Legal Collection to Enforce Your Claim

The legal collection phase generally involves acquisition of an enforceable court order. This typically mandates legal representation via a local attorney in Cyprus, and the costs vary based on the complexity of the case and the debtor's response. We offer a tailored 'Find a Lawyer' service, a network of 500+ local attorneys can cater to your particular needs.

An unconditional court order from the judicial debt collection process, together with the debtor's solvency, empowers bailiffs to enforce your claim through asset seizure/salary attachment. Insolvency proceedings remain the last resort for debt recovery in Cyprus when the debtor is insolvent.

In this guide, we dig deeper into each stage of the debt collection process in Cyprus. We have comprehensive solutions to offer, from finding amicable solutions to initiating bankruptcy proceedings. Trust us to be by your side through it all.

Understanding Amicable Debt Collection in Cyprus

The realm of amicable debt collection in Cyprus refers to non-litigious approaches to debt settlement. Often expedited by external agencies, this faster, less intricate strategy is an essential facet of debt management in Cyprus. Here, we delve into methods, significant factors, and steps involved.

Amicable Collection - Key Takeways
  • The Amicable Approach: Involves direct negotiation with debtors to reach a settlement without court intervention.
  • Statute of Limitations: General limitation period of 6 years for most civil actions, including debt recovery, extendable under certain conditions.
  • Fees and Costs: Administrative fees start from €185 for initiating the collection process, with additional fees based on case complexity.
  • Statutory Interest Rates: Adherence to the EU Late Payment Directive allows for statutory interest on overdue payments plus compensation.
  • Consumer Protection: Cyprus law protects consumers in debt collection, ensuring fair and transparent practices.
  • Judicial vs. Amicable Recovery: Amicable recovery recommended for its cost-effectiveness and relationship maintenance, with judicial action as a last resort.
  • Essential Documents: Successful recovery relies on comprehensive documentation, including contracts, invoices, and communication logs.
  • Cost Considerations: Creditors should be mindful of administrative and potential legal advisory fees in planning their debt recovery strategy.
  • Timeline for Recovery: The duration varies based on case complexity and debtor responsiveness, with quicker resolutions for prompt actions.
  • When to Escalate: Transition to judicial proceedings should be considered when amicable efforts fail or statutory limitations approach.

Navigating the Waters of Amicable Debt Collection in Cyprus

In Cyprus, amicable debt collection stands out as a cost-effective and relationship-preserving method for reclaiming overdue payments. This non-litigious approach underscores negotiation and understanding, aiming to strike a balance that acknowledges the debtor's conditions while safeguarding the creditor's financial interests. In the bustling economic landscape of Cyprus, where maintaining business relations is key, amicable collection acts as a beacon of diplomacy in the debt recovery process.

The Integral Role of Debt Collection Agencies in Cyprus

Debt collection agencies, such as Debitura, play a crucial role in facilitating amicable debt recovery in Cyprus. By leveraging their expertise and resources, these agencies initiate the recovery process through adept identification of debts and debtor circumstances, following up with strategic communication attempts. The objective and professional perspective provided by such agencies often pave the way for more fruitful recovery, effectively bridging the gap between creditors and debtors without personal biases intervening.

Benefiting Both Sides: The Amicable Advantage

The amicable route offers numerous advantages for all parties involved. Creditors circumvent the hefty expenses associated with legal proceedings and simultaneously preserve invaluable business relationships, thanks to the process’s cordial nature. For debtors, it offers the chance to negotiate more flexible repayment terms, thus easing financial burdens and fostering a sense of goodwill towards the creditor. This strategy accentuates mutual respect and empathy, laying down a conducive framework for resolving financial disputes amicably.

When to Transition to Legal Proceedings in Cyprus

Despite the emphasis on amicable resolution, situations may arise where transitioning to legal action becomes inevitable. Indications for this transition include persistent non-communication, habitual breach of repayment agreements, or intentional dodging by the debtor. Resorting to judicial measures is a significant step and should only be considered after all amicable avenues have been thoroughly explored. The switch to legal recovery often entails considerable financial and temporal commitments and is generally seen as a last recourse.

Economical Amicable Debt Collection with Debitura in Cyprus

At Debitura, we streamline the process of international debt collection in Cyprus, offering our services on a No Cure, No Pay basis. Our transparent pricing includes a success fee of 7.5% to 30%, determined by the recovery amount, ensuring you invest only upon successful collection. To embark on a hassle-free debt recovery journey, click here to learn more about our pricing and begin with us.

Seamless Amicable Debt Recovery Process

Choosing Debitura means opting for an efficient amicable debt recovery process in Cyprus, typically concluding within 2-3 months. Our user-friendly approach ensures:

  1. Easy Sign-Up: Begin without upfront costs. Create your account to start.
  2. Upload and Manage Your Claim: Simplified claim upload process with transparent success fee assessment.
  3. Real-Time Tracking: Stay updated on your debt recovery progress through the Debitura dashboard.
  4. Legal Consultation if Necessary: Should amicable resolution prove unfruitful, we provide three competitive quotes from local law firms, empowering you to make informed decisions regarding legal action.
Explore our step-by-step guide for amicable debt collection

Step 1: Verify Your Claim and Understand the Statute of Limitations

Preparation is paramount in the debt collection process in Cyprus. To make sure you're on solid ground, scrutinize contractual agreements for clear, enforceable terms that have been properly communicated to your debtor. This includes:

  • Detailed payment conditions such as deadlines and amounts due.
  • Specifications on any applicable late payment fees or interest rates.
  • A mutual agreement and understanding of these terms.

Crucial to this is awareness of Cyprus's statute of limitations which, according to the Limitation of Actions Law (66(I)/2012), generally imposes a 6-year period for initiating most civil actions, with some types of claims having different periods. This period should be viewed alongside:

  • Duration since the last debt acknowledgment or payment by the debtor
  • Any conditions that could pause or extend this statute, such as fraud or mistake

Gather and organize all pertinent documentation, including the original contract, invoices, prior communication, and records of any payment made towards the debt.

Step 2: Initiate Direct Communication

Often, a simple conversation can help clarify misunderstandings and expedite debt resolution. When reaching out, it’s essential to:

  • Address your debtor with empathy and professionalism.
  • Detail the debt's particulars – amount, due dates, and previous communications.
  • Listen to and comprehend the debtor's circumstances and reasons for delay.
  • Suggest feasible arrangements to encourage settlement of dues.
  • Meticulously document the dialogue, noting down any agreements or vital points discussed.

Step 3: Dispatch a Diplomatic Payment Reminder

Send a polite reminder to your debtor, gently prompting them about their financial obligation. This reminder should:

  • Maintain a courteous tone throughout.
  • Define the debt clearly, including amounts and deadlines.
  • Summarize prior communications and agreements, if any.
  • Offer various payment options for the debtor’s convenience.
  • Provide contact details for any queries or further discussion.

Step 4: Implement Late Payment Charges

Adding late fees and interest can motivate timely payments and compensate for any delays. Ensure that:

  • The original contract specifies these charges.
  • Penalties adhere to Cyprus's Late Payment Directive, where creditors can charge statutory interest and a fixed compensation sum of €40 for debt collection costs.
  • Debtors are fully aware of these additional charges, avoiding any surprises.

Step 5: Propose a Settlement or Payment Arrangement

Flexibility in payment terms can help in recovering dues while catering to the debtor’s financial state. To propose a fair plan:

  • Outline and document the terms distinctively.
  • Both parties should agree and endorse the new arrangement.
  • Ensure the plan is feasible, reflecting the debtor's payment capability.

Step 6: Send a Formal Demand Notice

Should amiable efforts falter, a demand letter signifies your intent to escalate matters legally if debts are not resolved. A compelling demand letter includes:

  • A succinct description of the debt and past collection attempts.
  • A definitive payment deadline to avoid legal action.
  • A tone that remains professional despite the serious nature of the letter.
  • Advice or review from a legal professional to ensure compliance with Cyprus’s laws.
Icon - Elements Webflow Library - BRIX Templates

Free Demand Letter Template

Demand Letter for Payment in Cyprus

 

From

[Your Full Name or Company's Name]
[Your Street]
[Your City], [Your District]
[Postal Code]
[Date of Today]

 

NOTICE OF DEBT COLLECTION ATTEMPT

OUTSTANDING AMOUNT: €[Euro Amount Due]
PAYMENT DEADLINE: [Date 10 days from Today]

 

Dear [Recipient's Full Name],

 

We are writing to inform you about a debt amounting to €[Amount Due] that remains unpaid to [Your Name or Your Company's Name]. This debt arose from [detailed reason for the debt including services rendered, breach of agreement, etc., including relevant dates, invoice numbers, and other specifics if applicable].

 

Accordingly, we kindly request that you settle the outstanding balance by the designated payment deadline, [Date 10 days from Today]. Failure to comply within this period will compel us to consider all pertinent legal recourses to recover the amount due. Such measures might include initiating legal action or assigning the debt collection to an external party, to be pursued without any further notification, fully observing the legal frameworks of the Republic of Cyprus.

 

Be advised that this letter is an official notice, which may be presented as evidence in legal proceedings, should you fail to clear the debt within the given timeframe. Additional legal expenses and attorney fees may be incurred, and your creditworthiness may suffer as a consequence.

 

To complete payment, [outline available payment methods, including electronic transfer, direct deposit, or through online platforms, as well as any specific instructions or reference numbers to include]. Any disputes or inaccuracies regarding this claim must be communicated immediately to [Your Contact Information].

 

We urgently advise addressing this matter to prevent any further legal implications.

 

Attached to this letter, please find [list any included documentation such as invoice copies, contract agreements, records of communication, or other pertinent evidence substantiating the claim].

 

Your prompt action in resolving this issue is much appreciated, and we are hopeful for an amicable resolution without resorting to legal proceedings.

 

Kindest regards,

[Your Name or Company's Name]
[Your Signature or Electronic Signature]

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Find a Debt Collection Lawyer

Finding the right lawyer for judicial debt collection is crucial. Debitura offers a streamlined 'Find a Lawyer' service, drawing from our network of 500+ local attorneys across the globe. Describe your needs and quickly get tailored proposals from up to three top lawyers.

Your Benefits at a Glance:

  • Verified Lawyers: Access vetted professionals for reliable representation.
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Explore the profiles of our esteemed local partners below and take the first step towards securing your legal advantage with Debitura.

Stasinos Avenue & 2 Kritis (Corner),1060, Nicosia, Cyprus
EFSTATHIOS C. EFSTATHIOU LLC

Efstathios C. Efstathiou LLC is a leading multi-disciplinary set with a proud reputation of being professional, approachable and modern. The Firm is distinguished for its entrepreneurial and pragmatic approach, international perspective and unparalleled legal practice.

Lawsuits
Legal collection
Debt enforcement
20
1961
Law firm
110, Archiepiskopou Makariou, Ap. 2, 7550 Kiti Larnaca Cyprus
Lazarou & Antoniou Law Firm (L.A. Law)

Lazarou & Antoniou is law Firm based in Cyprus and offers a Full Range of Legal services!

Lawsuits
Legal collection
Debt enforcement
5
5
Law firm
3, Polyviou Dimitrakopoulou, Anelli Court, 2nd Floor, Office 201, 1090 Nicosia, Cyprus. P.O. Box 25005, 1306 Nicosia, Cyprus
N. Connor LLC

We are a modern boutique Cyprus Law Firm. We have a successful track record and we constantly strive towards successful representation of our clients. Our bright, insightful and intuitive team aims to be at the cutting edge of best practice in Cyprus.

Lawsuits
Legal collection
Debt enforcement
1
2023
Law firm
KOLONAKIOU BUSINESS CENTER, 38, Spyrou Kyprianou Street, 2nd Floor, Offices 101-102, Germasogeia, 4042 Limassol, Cyprus
Andria Papageorgiou Law Firm

Legal insight. Business instinct.

Lawsuits
Legal collection
Debt enforcement
2
2020
Law firm
32 Ellados Avenue, 2nd floor, office 201, 8020 Paphos-Cyprus
A. FASARIA LLC

Full Service Law Firm

Lawsuits
Legal collection
Debt enforcement
5
2019
Law firm
Yerevan 0097, Norashen 9, apt 34, Republic of Armenia
Lyudvig Davtyan Law Office

Lyudvig Davtyan Law Office is an Armenian based legal entity with a mission to meet the special and complex needs of clients. Our enthusiastic team and professional alliance offer wide range of legal services both in Armenia and abroad.

Lawsuits
Legal collection
Debt enforcement
7
2012
Law firm
Veroias 11, office 203, Strovolos, Nicosia, Cyprus
Myrianthous law firm

The company is a well known legal office for the last 25 years specializing on debt recovery.

Lawsuits
Legal collection
Debt enforcement
7
2001
Debt collection agency
Akropoleos Avenue 44 - 46, Strovolos, Nicosia, 2012, Cyprus
C. MAVROCOSTAS & Co. LLC

C. Mavrocostas & Co. LLC is a commercial law firm specializing in Contract Law, Banking Law, Debt Collections, Company Law, Insolvency Law, Land Law and Employment Law.

Lawsuits
Legal collection
Debt enforcement
4
2018
Law firm
Y. VASILIOU & CO LLC

Y. Vasiliou & Co LLC (Vasiliou Law) is a multidisciplinary law firm, headquartered in Larnaca, Cyprus. Vasiliou Law is one of the fastest-growing Cypriot law firms, with extensive and expanding clientele, ranging from private individuals to global organisations.

Lawsuits
Legal collection
Debt enforcement
13
2018
Law Firm

Navigating Debt Enforcement in Cyprus

Obtaining a court order in Cyprus is merely the first step. What follows is enforcing it - a practice referred to as debt enforcement. This graph, supervised by clients' official bailiffs, empowers you to claim the debtor's assets, assuring complete due fulfilment.

Debt Enforcement - Key Takeways
  • Legal Framework: Governed by Cyprus Civil Procedure Law and EU regulations on recognition and enforcement of judgments.
  • Bailiff’s Role: Enforce court judgments by seizing assets or arranging payment arrangements with debtors.
  • Asset Seizure: Enforced through writs of execution, attaching to both movable and immovable property.
  • Costs and Expenses: Creditors can recover debt amount, €40 as recovery costs, and legal fees from successful lawsuits.
  • Foreign Judgments: EU judgments streamlined for enforcement, others require compliance with Cypriot legal procedures.
  • Garnishment Orders: Available to creditors to enforce debts by garnishing wages or other incomes of the debtor.
  • Consumer Protection: Debtors are entitled to rights like prompt payment, interest for late payments, and recovery cost compensation.
  • Procedure Efficiency: Debt recovery success hinges on timing, persistence, and effective use of legal channels.
  • Minimal Living Standards: Legal protections safeguard a portion of debtor’s income and essential assets from seizure.

Bailiffs' Crucial Role in Cyprus' Debt Recovery

In Cyprus, bailiffs, also known as enforcement agents, are indispensable in the realm of debt recovery. They are charged with the enforcement of court orders, focusing on locating, seizing, and eventually selling the debtor's assets. Their mission is to liquidate these assets, often through auction, to satisfy the creditor's claims. This process is meticulously governed by legal statutes to ensure fairness and transparency.

Stages of Debt Enforcement in Cyprus

The initiation of the debt enforcement process in Cyprus hinges on the creditor's ability to present a claim backed by an enforceable document. This document is pivotal in proving the debtor’s obligation and can range from judicial rulings to ratified agreements. Once this is in place, bailiffs are tasked with identifying and confiscating assets which might range from real estate to vehicles, with the law safeguarding certain personal belongings and ensuring a livable income for the debtor.

Understanding Costs and Cyprus' Legal Landscape

For creditors, comprehending the spectrum of costs associated with debt enforcement, including court expenses, bailiff charges, and attorney fees, is crucial. These costs can vary significantly based on the complexity and length of the case. Cyprus’ legal framework delineates the procedures for debt enforcement, defines the role of bailiffs, and safeguards the rights and obligations of all involved parties, guaranteeing a process that is both transparent and equitable.

Essential Pre-enforcement Considerations

Prior to commencing enforcement actions, it is imperative for creditors to ensure possession of a valid and enforceable title. A final attempt to resolve the debt amicably is also advisable, usually via a final payment notice to the debtor. This preliminary step is not only a manifestation of respect for the debtor's rights but also offers an opportunity for voluntary settlement, potentially obviating the need for further legal action.

Explore the cost and time frame for debt enforcement

Cost Factors in Debt Enforcement in Cyprus

In the realm of debt enforcement in Cyprus, various cost considerations come into play, pivotal among which are court fees, attorney charges, and the expenses associated with employing enforcement agents such as bailiffs. A critical facet to understand is that these costs can oscillate based on several factors: the intricacy of the legal scenario, the debt magnitude, and the types of enforcement actions necessitated (for instance, asset seizure, conducting property auctions or implementing wage garnishments).

By way of illustration, a rudimentary debt recovery scenario may accrue costs in the ballpark figure of a $300 court filing fee, attorney fees around $1,000, and supplementary enforcement charges potentially amounting to $500, culminating in a total expenditure of approximately $1,800. It's imperative to grasp, however, that this example oversimplifies the potential costs, which can soar in scenarios that involve intricate legal challenges or when the debtor mounts a defense against the enforcement activities.

Steps and Time Frames for Debt Enforcement in Cyprus

The pathway to enforcing debt in Cyprus typically unfolds across several stages: the initiation phase involves bringing forth a claim, which is followed by securing a judicial judgment, and ultimately, the execution of said judgment through distinctive enforcement methodologies. Each segment of this process is characterized by unique duration intervals, influenced by variables such as the procedural efficiency of the legal system, the debtor’s responsiveness, and any ensuing appeals.

  1. Initiating a Claim: This preliminary step entails the creditor lodging a claim with the court, a procedure which could span from mere weeks to several months, contingent upon the court’s caseload and the rigor of the documentation presented.
  2. Securing a Judgment: Post-claim lodging, the timeline for attaining a judgment can extend from several months to potentially more than a year, especially in cases where the claim faces contestation or necessitates elaborate testimonials and evidence.
  3. Executing the Judgment: This terminal phase involves actions such as asset appropriation or salary garnishment. The duration of this phase is highly variable, subject to factors like the precise nature and geographic locality of the assets, the degree of cooperation from the debtor, and the specific legal stipulations governing the liquidation of seized assets.

As an illustrative example, a streamlined debt recovery case could have a duration ranging from 6 months to 2 years from the commencement of the claim to the successful debt recuperation. Nonetheless, it's pivotal to acknowledge that scenarios entailing substantial legal resistance or necessitating multifarious enforcement actions could significantly extend this timeline.

An in-depth comprehension of the potential costs and time frames associated with debt enforcement empowers creditors to make judicious decisions regarding the pursuit of outstanding debts, meticulously weighing the prospects of successful recovery against the requisites of financial and temporal investments.

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Explore asset seizure and salary attachment options

Asset Seizure in the Cypriot Debt Enforcement Landscape

In the realm of debt recovery in Cyprus, seizing a debtor's assets forms a cornerstone of the enforcement process, empowering creditors to recover what is owed by taking over properties or valuables of the debtor. This procedure encompasses a broad array of assets ranging from immovable properties like land and buildings to movable assets such as vehicles, bank accounts, and even personal items of value. Initiating an asset seizure entails securing a court order which outlines the legitimacy and the scope of the seizure, ensuring that the process adheres to legal protocols.

Enforcement professionals, including bailiffs, play a pivotal role in this procedure. These agents carry out the due diligence of locating, assessing, and valuating the targeted assets to prepare for seizure. Certain legislations safeguard the debtor by excluding necessities that ensure a minimum living standard from being seized. The culmination of this process sees the assets auctioned publicly, with the generated funds used to settle the debts. This mechanism seeks to strike a delicate balance between affording creditors avenues to reclaim debts, and protecting debtors from disproportionate financial strife.

Leveraging Garnishment and Salary Attachments for Debt Recovery in Cyprus

An integral arm of Cyprus's debt enforcement toolset includes garnishment and the attachment of wages, offering creditors a legally sanctioned pathway to intercept monies due to the debtor. These instruments are subject to Cyprus's Civil Procedure Law, ensuring that they are implemented within a framework that respects both the creditor’s claims and the debtor's rights. Garnishment particularly comes into play with the debtor's salary, where, upon court authorization, a fraction of the debtor's income is directed from the employer straight to the creditor.

It's crucial that this mechanism doesn't overly encumber the debtor's capacity to meet basic needs. Legal stipulations are in place in Cyprus to cap garnishments to a portion that leaves individuals with sufficient means for living expenses. Debtors are not left without recourse and may contest garnishment orders that they deem unfairly prejudicial to their financial welfare. This legal safeguard highlights the system's attempt to maintain a judicious balance, facilitating debt recovery for creditors while warding off undue financial burden on debtors.

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Debt Recovery through Insolvency in Cyprus

When debtors find themselves unable to fulfil financial obligations, traditional recovery methods may fail, leading creditors to seek alternative sources of restitution. In Cyprus, one such recourse is insolvency proceedings. This rigorous legal process aims to methodically liquidate the debtor's assets, providing creditors with an ultimate recovery strategy in the face of seemingly insurmountable debt hurdles.

Insolvency Proceedings - Key Takeways
  • Bankruptcy Purpose: Aimed at reorganizing the debtor company under law control via repayment agreements.
  • Liquidation Initiative: Can be initiated by the debtor or a single creditor for insolvent companies without prior dispute.
  • Official Notice and Deadlines: Court issues a notice to pay creditor claims or face insolvency; further extensions can be granted.
  • Publishing Insolvency: Liquidation assets are used to pay creditors; companies are removed from the register post-process.
  • Creditor Claims: Creditors must lodge claims within a set deadline; options include retainment of goods or asset valuation.
  • Claim Disputes: Insolvency practitioners can accept or dispute claims; unresolved disputes require court intervention.
  • Liquidator Powers: Decides payment or return of goods in stock, confirms claims post-document evaluation.
  • Creditor Categories: Creditors are ranked; payments to unsecured creditors are made post-settlement with higher-ranked groups.
  • Meeting and Duration: Creditors’ meeting within 75 days; liquidation procedure lasts between three to seven years, simplified procedure one to two years.
  • Management Liability: Shareholders and management may be liable with personal assets for malice; may face a ban on future positions.

Exploring Insolvency Proceedings in Cyprus

Insolvency proceedings in Cyprus offer a legal framework for addressing situations where businesses or individuals are unable to fulfill their financial commitments. Reflecting the influence of both English Common Law and EU directives, the process aims to either reorganize the debtor's financial affairs or liquidate assets for creditor repayment. These proceedings can be initiated by either creditors for debts exceeding EUR 15,000 or the debtor, contingent upon demonstrating an inability to meet ongoing financial obligations. The multifaceted structure of Cyprus’ court system ensures that debtors and creditors are afforded a comprehensive legal pathway for insolvency, encompassing both judicial and administrative phases. This methodical approach aims at maximizing asset recovery, ensuring equitable distribution among creditors, and, where possible, rehabilitating the debtor's financial standing.

Positioning and Protection of Creditors' Interests

C yprus' insolvency framework meticulously categorizes and orders creditor claims, balancing the need for fair asset distribution with the imperative of economic efficiency. Creditors are distinguished by the security of their claims, ranging from secured creditors with collateral to unsecured ones without. For optimal asset recovery, timely claim registration and active participation in insolvency processes are critical. Creditors may influence the proceedings through committee involvement or by contributing to the restructuring discussions, hence affecting the outcome in their favor.

Financial Implications and Timeline Considerations

The financial burden of insolvency proceedings encompasses a myriad of costs, including court fees, administrative expenses, and legal representation charges. These costs, deducted from the debtor's estate, underline the importance of efficient asset management to preserve value for distribution. Moreover, the duration of insolvency cases in Cyprus is notably variable, influenced by the complexity of the debtor's financial environment, the quantum of claims, and the potential for legal challenges. As these factors contribute to elongated timelines, creditors are advised to anticipate extended periods for resolving insolvency, which directly impacts debt recovery schedules.

Explore our step-by-step guide for insolvency proceedings

Step 1: Assessing Insolvency Status

Before initiating bankruptcy proceedings against a debtor in Cyprus, it is pivotal to thoroughly ascertain their insolvency status. This involves a detailed evaluation of their financial health, specifically focusing on their inability to meet financial obligations like outstanding invoices or persistent payment defaults. In Cyprus, creditors must understand the distinction between voluntary (debtor-initiated) and involuntary (creditor-initiated) bankruptcy proceedings. To proceed with an involuntary bankruptcy petition, creditors must possess concrete proof of the debtor's insolvency, such as failure to pay debts exceeding EUR 15,000 or acts indicative of bankruptcy.

Step 2: Filing the Bankruptcy Petition

Initiating a bankruptcy petition in Cyprus is a formal legal undertaking that necessitates meticulous documentation, including detailed financial statements and undeniable evidence of insolvency. The engagement of a legal expert, proficient in Cypriot insolvency laws, is crucial to ensure accuracy and legal compliance. The petition must be appropriately filed in the court where the debtor conducts their main business operations, typically the District Court relevant to the debtor's location. The clarity, thoroughness, and legal strength of your documentation have a significant impact on the petition's success.

Step 3: Notification and Preliminary Hearing

Upon successful filing of the bankruptcy petition, the Cypriot court schedules a preliminary hearing and notifies all pertinent parties involved, including the debtor. It's imperative for creditors to be well-informed about the hearing schedule and to be prepared to provide any additional documentation as requested by the court. This stage serves as a critical juncture for establishing the creditor's standing in the proceedings and asserting their claims effectively.

Step 4: Debtor's Defense

Within the Cypriot legal framework, debtors reserve the right to contest the bankruptcy petition laid against them. They may offer evidence to dispute the insolvency claim or propose a viable settlement to avoid bankruptcy. Creditors should maintain close collaboration with their legal representatives to adeptly counter any objections raised by the debtor and reinforce the legitimacy and urgency of their case.

Step 5: The Hearing

The hearing represents a decisive phase where both the creditor and the debtor articulate their positions before the court. Creditors are expected to present compelling evidence substantiating the debtor's insolvency status. Preparation for this entails gathering all relevant financial documents, invoices, communication records, and possibly procuring expert testimonies. Conversely, the debtor has an opportunity to challenge the insolvency claims, dispute the owed debts, or suggest alternative dispute resolutions. Judicial decisions made at this stage are pivotal and can considerably influence the trajectory of the bankruptcy proceedings.

Step 6: Court Decision

Following the comprehensive examination of arguments and evidences from both parties at the hearing, the Cypriot court renders its decision. The judgment may culminate in the approval of the bankruptcy petition, dismissal of the petition, or recommendation of alternative resolution methods. If bankruptcy is sanctioned, the process advances into phases of restructuring or liquidation, necessitating creditors to file their claims to be recognized in the debtor’s asset distribution.

Step 7: Post-Decision Actions

In cases where creditors are discontented with the court’s decision or the treatment of their claims, the Cypriot legal system provides avenues for opposition, appeal to a higher court, or seeking judicial review. These remedial actions offer a mechanism to contest the outcomes and advocate for a fair allocation of the debtor's liquated assets or reevaluation of the insolvency proceedings.

Step 8: Navigating Post-Bankruptcy Scenarios

In the aftermath of bankruptcy proceedings, creditors must strategically plan their course for debt recovery, which may involve active participation in the liquidation process or pursuing negotiated settlement plans. Further litigation might be necessitated to resolve disputes over asset distributions or claim priorities in complex cases. Additionally, creditors might need to reassess their credit issuance policies to mitigate future insolvency risks and enhance their financial protection.

Bankruptcy proceedings in Cyprus are marked by complexity and potential lengthiness. However, with thorough preparation, adept legal guidance, and strategic foresight, creditors can navigate this intricate process to maximize debt recovery, all the while adhering to the legal and ethical standards stipulated by Cypriot insolvency law.

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Collecting cross border claims - Key Takeways
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Country Risk Rating

Mastering Business in Cyprus: A Creditor's Roadmap

Fostering commerce in Cyprus means more than mere prospects; it is about grasping the distinct business terrain and its risks. In this enlightening guide, we explore the complexities of executing business in Cyprus, presenting crucial insights for foreign creditors. Covering aspects from scrutinizing payment patterns to understanding corporate foundations and evaluating economic, political, and financing hazards – our guide empowers you with the essential knowledge to successfully steer through the Cypriot business milieu.

The analysis is concluding that the risk of running a business in Cyprus is medium-low. Based on this medium-low score, we recommend being careful providing credit and considering charging upfront payment or using credit insurance when trading if you don't know the customer in Cyprus well. If possible, provide a short credit period or even better upfront payment. The medium-low risk score is based on the following factors:

Low risk
5-10
Medium-low risk
11-15
Medium risk
16-20
Medium-high risk
21-23
High risk
24-26
Low risk
5-10
Medium-low risk
11-15
Medium risk
16-20
Medium-high risk
21-23
High risk
24-26
Low risk
5-10
Medium-low risk
11-15
Medium risk
16-20
Medium-high risk
21-23
High risk
24-26
Low risk
5-10
Medium-low risk
11-15
Medium risk
16-20
Medium-high risk
21-23
High risk
24-26
Low risk
5-10
Medium-low risk
11-15
Medium risk
16-20
Medium-high risk
21-23
High risk
24-26
Key Takeways
  • Private Debt Risks: Private debt remains high, amplifying financial risks in Cyprus.
  • Service Sector Fluctuations: Economy heavily dependent on services, especially tourism and real estate.
  • High NPL Ratio: Despite recent improvements, non-performing loan (NPL) ratio in banking sector remains a concern.
  • External Shocks Vulnerability: Cyprus's small size and import dependency make it susceptible to external economic shocks.
  • Inflationary Pressures: The country experiences varying inflation levels impacting household spending and investment decisions.
Explore Payment Trends and DSO

Understanding DSO and Payment Behaviour in Cyprus

Delving into Days Sales Outstanding (DSO) metrics and payment behavior provides crucial insights into the financial health and operational efficiency of businesses within Cyprus. Analyzing these aspects helps foreign creditors understand the average time taken by companies to collect payments post-invoice, highlighting prevalent payment practices and potential delays in the market. With its geographical advantage and skilled workforce, Cyprus possesses strengths for brisk economic activities. However, the issues like slow legal processes and heavy debt burdens often impede efficient payment behaviors, subsequently affecting the DSO metrics negatively.

Key Challenges

Foreign creditors face several challenges in Cyprus, including late payments, defaults, and varying levels of credit risk. These issues can significantly impact cash flow and financial planning. The economic conditions, industry-specific trends, corporate payment policies, and legal landscapes, including the enforcement of late payment interests as stipulated by EU regulations, form a complex environment. Understanding these underlying causes is essential for mitigating risks and making informed credit decisions. The European Directive on combating late payment in commercial transactions applies, allowing for compensation and interest on delayed payments, which should be considered by creditors operating in Cyprus.

Exploring Solutions

To navigate the complexities of the Cypriot business landscape effectively, foreign creditors can employ several strategies. Conducting thorough credit checks on potential clients, considering credit insurance through services like those offered by Coface, and implementing proactive accounts receivable management practices are some of the viable strategies. Using comprehensive business information solutions like ICON for assessing financial risks, along with considering statutory entitlements to interest and compensation for late payments as per the Late Payments in Commercial Transactions Regulations, can enhance risk management, improve cash flow, and ensure more predictable and efficient payment behaviors from clients in Cyprus.

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Explore main corporate structures

Types of Corporate Structures in Cyprus

  • Limited Liability Company (LLC): Common structure with limited liability for shareholders, minimum share capital of €1, benefits from separate legal entity status.
  • Public Company: Requires a minimum share capital of €25,629 with liability limited to capital contribution, suitable for larger businesses seeking public investment.
  • Partnership: No minimum capital requirement, partners bear unlimited liability, suitable for small businesses with multiple owners.
  • Branch of a Foreign Company: No specific capital requirement, operates as an extension of a foreign entity, liable for obligations in Cyprus.
  • Private Company (Limited by Shares): Minimum share capital of €1, limited liability for shareholders, often chosen for small to medium-sized enterprises.

What implications do the corporate structures have for creditors?

  • Creditors of an LLC can typically pursue the company’s assets for debt collection, with limited recourse to shareholders' personal assets.
  • In a partnership, creditors can go after the personal assets of the partners to settle debts owed by the business, as they have unlimited liability.
  • Public companies offer creditors more security as the liability is limited to the capital invested by the shareholders, thus reducing personal asset risk.
  • A branch of a foreign company gives creditors access to the assets of the branch in Cyprus but may face challenges enforcing foreign judgments.
  • Private companies provide a middle ground where creditors can access company assets for debt settlement, without immediate recourse to personal assets of shareholders.

In conclusion, understanding the implications of different corporate structures in Cyprus is crucial for creditors to assess potential risks and ensure effective debt collection strategies.

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Explore detailed country risk analysis

The economic risk in Cyprus

Our analysis shows that the economic risk in Cyprus is medium-high (4 out of 6). An economic risk of 4 out of 6 is relatively high in Europe.

GDP and economic growth are critical drivers for economic risk.
The GDP of Cyprus is 27,72 bn. USD (2021), growing by 5,51% per year.

In terms of the size of its economy, Cyprus ranks #99 out of 183 countries and has a medium-sized economy.

In terms of growth rate, it is ranked #71 out of 183 countries and is therefore considered a fast-growing economy.

GDP per capita is 30798 USD, ranking Cyprus number #31 out of 183 countries. The result of this is purchasing power of citizens in Cyprus is high compared to the rest of the world.

You get a more detailed idea of GDP and economic growth in Cyprus in the table below:

GDP and economic growthLatest value
Economic growth: the rate of change of real GDP5,51%
Gross Domestic Product, billions of U.S. dollars27,72
GDP per capita, current U.S. dollars30798,48
GDP per capita, Purchasing Power Parity40791,43

Another critical driver for the economic risk score is the inflation rate and the interest rates. You get a more detailed idea of monetary KPIs in Cyprus in the table below:

Monetary KPI'sLatest value
Inflation: percent change in the Consumer Price Index2,4%

The inflation in Cyprus was 2,4% in 2021 which is considered a low inflation rate.

The business environment risk in Cyprus

Our analysis shows that the business environment risk in Cyprus is low (2 out of 6), which is a pretty average risk score in Europe.

Economic freedom and rights determine the business environment risk in a country. You can see the critical facts for Cyprus in the table below:

Economic freedom indexLatest value
Property rights index (0-100)79
Freedom from corruption index (0-100)65
Fiscal freedom index (0-100)80
Business freedom index (0-100)76
Monetary freedom index (0-100)85
Trade freedom index (0-100)84
Investment freedom index (0-100)75
Financial freedom index (0-100)60
Economic freedom, overall index (0-100)71

As you can see in the table, the property rights index is 79 in Cyprus, which is considered quite good in Europe.

The business freedom index is based on 10 indicators, using data from the World Bank’s Doing Business study. The Index is 76 in Cyprus, a quite average score for a country in Europe.

Cyprus's overall economic freedom index is 71 out of 100 and is based on factors such as the rule of law, regulatory efficiency, and market openness.

The political risk in Cyprus

The political risk in Cyprus is very low, with a score of 1/6. This is a low political risk score in Europe.

The governance and political stability indicators are critical drivers for political risk. An overview of Cyprus can be seen in the table below:

Governance and political stability indicators Latest value
Rule of law index (-2.5 weak; 2.5 strong)0,64
Government effectiveness index (-2.5 weak; 2.5 strong)0,74
Control of corruption (-2.5 weak; 2.5 strong)0,39
Political stability index (-2.5 weak; 2.5 strong)0,44
Corruption Perceptions Index, 100 = no corruption53
Shadow economy, percent of GDP32,2%

The rule of law index analyses to which extent agents have confidence in and abide by the rules of society, in particular the quality of contract enforcement, property rights, the quality of the courts, and the police's ability to enforce court orders.

When doing business in a country, the rule of law index is critical as it describes your ability to enforce commercial contracts.

In Cyprus, the rule of law index is at 0,64 points, with the score going from -2.5 (weak) to 2.5 (strong). Cyprus has, therefore, a high rule of law index, which means you should have a good chance of enforcing your contracts. If your individual customers have good creditworthiness, you should therefore feel relatively safe when providing credit.

Other drivers for the very low political risks are the weak control of corruption, the weak political stability index, and the large shadow economy that is 32,2% of Cyprus's GDP.

The commercial risk in Cyprus

In Cyprus, the commercial risk score is 3/4, which in our model is a medium score. This medium commercial risk score is pretty average compared to the average in Europe.

The commercial risk is influenced by a country's international trade relationships. You can see some of the key facts for Cyprus in the table below:

International trade and investment Latest value
Exports of goods and services as percent of GDP81%
Exports of goods and services, annual growth13,99%
Imports of goods and services as percent of GDP79,94%
Trade balance as percent of GDP1,07
Trade balance, billion USD0.27
Foreign exchange reserves, billion currency units1.61

Cyprus has a total of foreign exchange reserves of 1.61 bn. USD.

Cyprus has a positive trade balance of 1,07% of GDP. This means that Cyprus imports fewer goods and services than the country exports.

The annual growth of exports of goods and services has been growing 13,99% annually - now 81% of GDP. Import of goods and services represents 79,94% of the GDP in Cyprus.

The financing risk in Cyprus

We have calculated the financing risk to be 3/4, which equals a medium risk. A medium financing risk score is relatively high for countries in Europe.

The country's banking system, efficiency, and stability influence the financing risk. You can find the critical facts for Cyprus in the table below:

Banking system efficiency and stabilityLatest value
Index of legal rights for creditors and borrowers (0 = weak to 12 = strong)7
Credit information sharing index, 0 (low) - 8 (high)5

In Cyprus, the credit information sharing index is 5 on a scale from 0 (low) to 8 (high). The result of this is accessibility and quality of credit information available in Cyprus is medium.

This makes it not that easy for you to understand the credit risk of your counterpart in Cyprus. Unless you have found a good source for credit ratings or know your specific customers well, we suggest charging payment upfront or using credit insurance.

Your rights as a creditor are 7 out of 12 and, therefore, medium.

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