The risk is usually in the security package, not the headline rate
A facility agreement should be read with the mortgage, charge, guarantee, assignment, covenant and default provisions. A borrower may understand the repayment amount and still miss what the bank can do if a technical breach occurs.
Transactions and documents
Loan and facility-agreement review
Mortgages, charges, pledges, assignments and guarantees
Acquisition, property and working-capital finance
Refinancing, restructuring and settlement terms
Intercreditor and priority arrangements
Security registration, release and discharge
Bank-account opening and KYC document coordination
Enforcement, guarantee and banking disputes
KYC is part of the transaction
Cyprus banks must understand the customer, beneficial owner, source of funds, source of wealth, tax residence and purpose of the relationship. A complete legal pack helps, but no lawyer can guarantee that a bank will open an account, approve finance or accept a particular payment route.
Property and corporate finance
A mortgage or acquisition facility should follow the same facts as the property contract, corporate approvals and tax structure. Conflicting amounts, parties or payment dates across those documents create avoidable completion and compliance problems.
Questions worth asking before signing
Can a lawyer guarantee that a Cyprus bank account will open?
No. We can prepare and organise the legal and due-diligence documents, explain the ownership and transaction, and answer legal queries. The bank applies its own risk policy and makes the final decision.
Is a personal guarantee only a formality?
No. A guarantee can expose the guarantor’s personal assets and may contain continuing, indemnity and waiver provisions. It should be read independently from the borrower’s facility.
How do I know that old security has been released?
Payment alone is not always enough. The release documents, registrations and Land Registry or Registrar records should be checked. Completion mechanics should state who delivers the release, when and against which funds.
Before you sign or refinance
Send the term sheet, facility, security documents, guarantees, corporate approvals, repayment proposal and the underlying transaction documents. Tell us the signing or drawdown deadline and whether independent advice is required for any guarantor.
Request a banking-law review | law@papacleovoulou.com | +357 26 933218
General information only. Last reviewed 1 August 2026. Finance advice depends on the complete facility and security package, parties, registrations and commercial transaction.
