Cyprus Finance Minister expresses concern over loan interest and compound interest practices

On February 13, 2026, Cyprus Finance Minister Makis Keravnos expressed concern regarding the impact of interest and compound interest on loans managed by credit acquisition companies. Speaking at the Ministry of Finance, he stated that the government is currently analyzing data provided by the Central Bank of Cyprus to address the issue of accumulating debt. Keravnos noted that various consultations are ongoing, including a recent meeting with the Financial Ombudsman where the matter was discussed. When asked about potential legislative regulations or a mortgage-to-rent scheme, the Minister clarified that no specific plan has been finalized. He emphasized that the government must move cautiously as Cyprus is being monitored and evaluated by international bodies. Additionally, Keravnos addressed concerns about corporate crime, asserting that oversight is sufficient and that the ministry maintains close cooperation with the police. He concluded that the situation remains under close study to determine the best course of action. The Minister's remarks highlight a balance between addressing social concerns and maintaining international economic credibility.