A major change is coming to the Cypriot banking sector. Alpha Bank Cyprus has agreed to buy AstroBank in a deal worth around €200 million. The acquisition is expected to be completed by the end of 2025, possibly as early as the last quarter of the year.

Once complete, Alpha Bank Cyprus will become the third-largest bank in Cyprus, controlling around 10% of the market.

But while this may be good news for the Cypriot banking system, it could raise concerns for anyone with unresolved property debts in Cyprus.

What This Means for Borrowers

Many foreign buyers purchased property in Cyprus in the mid-2000s, often with Swiss Franc or Euro mortgages. Over the years, some of these loans have become unmanageable due to a combination of currency fluctuation, high interest rates, and falling property values.

Here’s how the takeover could affect those with AstroBank mortgages:

• Stricter collection methods-Larger banks have more resources to chase overdue debts.
• Fewer chances to renegotiate-A smaller bank may have been more flexible; a bigger bank often applies tougher policies.
• Faster enforcement action-If you are in arrears, the bank may act more quickly to recover the debt or even repossess.

Why Timing Is Important

The deal is set to be completed at the end of 2025. However, if you need to resolve a debt issue in Cyprus, you should not wait until then. AstroBank loans will eventually come under Alpha Bank’s control, and once that happens, options may become limited. Acting early could give you a better chance of negotiating affordable terms or even reducing your debt.

How EU Property Solutions Can Help

At EU Property Solutions, we have helped many clients across Cyprus and beyond who are struggling with property debt. We understand how stressful it can be to face mounting repayments or the threat of legal action.

With this major bank merger on the horizon, now is the time to take control. If you have a mortgage with AstroBank and are worried about the impact of Alpha Bank taking over, speak to us today.