CYPRUS: Online auctions for foreclosed properties

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Cyprus banks can now sell foreclosed properties online, as Finance Minister Harris Georgiades issued a decree enabling digital auctions.

Online auctions were a key demand from the banks for them to reduce the large volume of property collected from foreclosures in their portfolios.

The decision calls for bidders to send proposals lower than those offered previously.

Before an online auction may take place, banks must give the notice 30 days.

The electronic bid system will also record the bids submitted, starting with the bid at reserved price and informing all interested parties of any changes to the highest bid immediately by the online system.

At the end of the auction process, the property will be sold to the highest bidder.