Publications

Cypriot insolvency and restructuring is based on English law, with creditor-friendly instruments such as judicial winding up and receivership. During the financial crisis of 2008, reorganisation procedures were introduced in Cyprus, under pressure from the EC, ECB and IMF (Troika) and following consultation with numerous Member States. Interestingly, Cyprus opted for the Irish procedure of examinership, which offers protection of a judicial moratorium for the debtor – in self-administration – to seek a creditor settlement under a scheme of arrangement.

On May 7, 2015, the first reform of insolvency proceedings for legal entities and individuals was implemented with five pieces of legislation intended to give businesses a second chance introducing examination and personal debt restructuring, to tackle the existing excessive private debt. On July 8, 2018 a second set of legislation was implemented designed to cover the issues that arose from the first reforms and to create further security, stability, market development, economic recovery and the reduction of non-performing loans.