Causes of the Great Recession

The share of cash in real estate purchases is increasing, as the relevant data show. The sharp increase in lending rates has sharply reduced the demand for mortgages, but at the same time transactions continue to move upward, along with sales prices, which are breaking one record after another.

The International Monetary Fund (IMF) welcomed the strong recovery of Cyprus' economy but warned over the banking sector's bad loans ratio, in a report published on Monday as part of the Article IV consultation with the country.