The Central Bank Governor Mr.Athanassios Orphanides has forwarded as of the 12th July 2007 a directive to all commercial  banks to curb their threshold on property lending.

Banks were told that they must cut the credit ceiling to a maximum of 60 per cent of the value of a property (open market value) down from 70 per cent applicable to all individuals / companies now buying  a property in Cyprus for a second time.
The same credit ceiling applies to commercial loans ie. Developers will now have to contribute 40% of their own funds towards purchasing the land as well as 40% towards the overall construction costs.
The Central Bank directive takes effect immediately.

Good news however for first time Buyers (Both Local & Overseas Purchasers) who are making their first step onto the property ladder………
the credit threshold remains unchanged at 80 per cent.