Information to Borrowers in Financial Difficulty
CAC Coral Limited aims to always treat fairly its borrowers and fully adheres to the Code of Conduct on the Handling of Borrowers in financial difficulties (“Code”) issued by the Central Bank of Cyprus.
The Code is part of the Directive on Arrears Management (Appendix 2 of Directive) issued by the Central Bank of Cyprus. This Directive, available at the website of CBC, https://www.centralbank.cy/en/legal-framework/licensing-supervision/regulations-directives/directives-regulations-and-guidelines-which-govern-the-operation-of-banks/directive-on-arrears-management.
The directive regulates the arrears management framework and establishes the Code of Conduct between Authorised Credit Institutions and borrowers. The provisions of the “Code” are applicable to the following persons:
- Natural persons granted credit facilities by an ACI with total outstanding balances of credit facilities (including credit facilities of their connected persons) up to one million euro (€1.000.000). The said scope of application includes guarantors of the borrower and third parties who provided securities to the ACI for the specific borrower’s credit facilities.
- Micro and small enterprises granted credit facilities by the ACI with total outstanding balances of credit facilities (including credit facilities of their connected persons) up to one million euro (€1.000.000). Micro and small enterprises are defined as follows (European Commission Recommendation of 6 May 2013 concerning the definition of micro, small and medium-sized enterprises (2003/361/EC)):
| Enterprise Category | Number of employees | Annual turnover or balance sheet total |
| Micro | <10 | < or = € 2 million |
| Small | <50 | < or = € 10 million |
| Self Employed | Registered with VAT and Social Security | Registered with VAT and Social Security |
It is noted that the following persons do not fall within the scope of application of the Code:
- Persons for which an application for bankruptcy was filed by a creditor;
- Persons for which a receiver or administrator was appointed by a creditor;
- Persons for which a dissolution decree was issued.
